Putin Calls for Russia to “Outpace” Global Economic Growth Amid Slowdown

During a government meeting, Russian President Vladimir Putin stated that Russia’s economy should strive to grow faster than the global average. While acknowledging progress in curbing inflation, he expressed concern over a recent slowdown in economic momentum, which he attributed to factors like sanctions and high interest rates.

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Key points from Putin’s address:

• Growth Imperative: Putin emphasized that a robust domestic economy is essential for financial stability and the successful implementation of national projects. He called for Russia to “outpace” the global economy by leveraging its own potential, fostering foreign partnerships, and adopting advanced technologies.
• Economic Performance: Citing data, Putin noted a sharp deceleration in Russia’s GDP growth, from 4.3% in 2024 to 1.1% in the first seven months of 2025. He mentioned a July GDP growth of 0.4%.
• Inflationary Concerns: While acknowledging that government policies were starting to take effect in slowing price increases, Putin highlighted that inflation remained a concern. He noted a drop in consumer price growth from 8.8% in July to 8.1% in August, but this remains well above the Central Bank of Russia’s 4% target.

The state of Russia’s economy is being closely watched as the U.S. and its allies consider additional sanctions. Economists forecast a further slowdown in Russia’s growth to around 1-2% in 2025, which would place it below the global average. Much of the recent growth has been driven by military spending and energy exports, but the economy is now facing headwinds from sanctions, labor shortages, and high interest rates.

These remarks follow recent comments by President Donald Trump, who stated that Russia’s economy is “dead” and criticized both Russia and India, saying they would “go down together” due to India’s continued purchase of Russian oil.