Russia’s Growth Slows Amid Central Bank's Inflation Tactics

Russia's economic growth is set to decelerate to 1% this year, down from 4.3% in 2024, due to the central bank's measures to control inflation. President Putin announced a projected inflation decrease from 9.5% last year to 5.5-5.7% in 2025, ensuring funding for military needs.

In a bid to curb inflation, Russia expects its economic growth to slow significantly, with projections indicating a drop to 1% from the previous year's 4.3%, President Vladimir Putin announced at his annual press conference.

Putin attributed this deceleration to deliberate actions by the central bank, aiming to manage inflation rates effectively. The measures are expected to bring down inflation from last year's 9.5% to between 5.5% and 5.7% by 2025, offering a more stable economic landscape.

Despite these financial strategies, Putin assured that all military expenditures would remain fully funded through the nation's budget, underscoring a priority on defense preparedness amidst broader economic adjustments.

(With inputs from agencies.)