Putin Praises Russia's Economy Amid Recession Concerns

At the St. Petersburg International Economic Forum, President Vladimir Putin expressed optimism about Russia's economic outlook, highlighting a 1.5% growth in the first four months of 2025 and a reduction in inflation to 9.6%. He stressed that the economy has diversified beyond reliance on oil and gas exports, with steady growth in manufacturing industries and technological advancements driven by the military sector benefiting civilian industries. Despite this positive outlook, some government officials, including Economic Minister Maxim Reshetnikov, warned that Russia is on the brink of a recession, a situation Putin insisted must be avoided. Putin also emphasized Russia's resilience, referencing a 4.1% GDP growth last year and advocating vigilance to maintain economic stability amid global uncertainties. The economy has faced challenges such as Western sanctions, lack of foreign investment, and inflationary pressures, but high defense spending has supported growth and low unemployment. However, economists caution about potential stagnation due to limited investment outside the military sector and ongoing inflation risks.