Putin says that the Russian recession should not happen “under any circumstances” Business and Economics News

President Vladimir Putin said the Russian economy should slip into recession, after economists have warned months ago of the slowdown in growth.

Putin told the attendees, including government ministers and central bankers, at the St. Petersburg International Economic Forum on Friday that some specialists and experts “point to the risks of recession and even recession.

“This should not be allowed to happen under any circumstances,” he said.

He added: “We need to follow the budget, tax and monetary policy of well -thoughts well.”

Economy Minister Maxim Richnikov said on Thursday that the economy was about to slip into stagnation, and that monetary policy decisions would determine whether it is falling into one or not.

In October, Russia increased the main interest rate to the highest level since the early first decade of the twentieth century to reduce high inflation, only to reduce it by a percentage to 20 percent earlier this month.

Moreover, economists have warned for several months of slowdown in the economy, as the country has spread the slower expansion of a quarter of an annual within two years during the first quarter of 2025.

However, the Kremlin said that it is expected to slow down due to two years of rapid expansion, as it increased military spending to finance its war against Ukraine.

However, Putin denied that the defense industry was only leading the economy. “Yes, of course, the defense industry played its role in this regard, but it also did the financial industries and industries,” he said.

He added that the economy needs a “balanced growth”, and calls on officials to follow up “all indicators of the health of our industries, our companies and even individual companies.”

Meanwhile, Deputy Prime Minister Alexander Novak said on Friday that it was time to “reduce the interest rate and start heating the economy.”

The German Gref Gref, CEO of the largest lender in Russia Serbank Sber.MM, also called for lower prices to stimulate companies to invest.

Military industries growth

Putin has used the annual economic forum to highlight the economic ingenuity of Russia and encourage foreign investment, but Western executives have collected it since Moscow sent forces to Ukraine in 2022, and left it to business leaders from Asia, Africa and Latin America.

The economy, which struck a number of Western sanctions, has surpassed predictions so far. High -growth defensive spending has pushed low unemployment despite inflation in fueling.

Also, the large recruitment bonuses for military recruitment and the deaths of death for those who were killed in Ukraine have placed more income in the poorest areas in the country. But in the long run, inflation and a lack of foreign investment constitute threats to the economy.

Economists have warned against pressure on the economy and the possibility of its passenger due to a lack of investment in sectors other than the army.

Putin said the growth of military industries helped to develop new technologies that have become available to the civil sector.

He pledged to continue the military update, relying on the lessons learned during the fighting in Ukraine.

He said: “We will expand a new technology to improve the combat capabilities of the Russian armed forces, and modernize the military infrastructure facilities (and) to equip it with the latest technologies, weapons and equipment.”

He added: “At the same time, we intend to develop military and technical cooperation with friendly countries. We are not only talking about supplies or modernization of equipment and weapons, but also about joint development, training of employees, and the establishment of rotational key and production facilities.”