Russia's GDP grows 4.1% in 2024 amid inflation concerns

Russia reported a 4.1% economic growth for 2024, driven mainly by military spending amid the ongoing conflict in Ukraine. Prime Minister Mikhail Mishustin noted that this growth matches the previous year's expansion and is attributed to high investment and consumer activity, despite rising inflation and labor shortages. President Vladimir Putin acknowledged the strong performance but emphasized the need to tackle inflation, which reached 9.5% last year, with food prices surging significantly. Analysts predict a slowdown, with an expected growth of only 1.6% in 2025. Putin also stressed the importance of structural changes in the economy to foster sustainable growth and the creation of new businesses. The government plans initiatives to promote these changes, focusing on innovative management and technological advancements.