Russia's Economic Outlook: GDP Growth and Inflation Trends

Russia's GDP grew by 1% in 2025, as announced by President Vladimir Putin. Despite a price spike in January due to a VAT increase, Putin predicts that the inflation rate will stabilize at around 5% by year's end, implying short-term impact on the economy.

Russia's economy is set on a growth trajectory, with its GDP expanding by 1% in 2025. This development was announced by President Vladimir Putin during a governmental meeting.

Despite concerns over rising prices following a value-added tax (VAT) hike in January, Putin emphasized the temporary nature of the spike, suggesting minimal long-term impact on the economy.

Looking ahead, the President projected that inflation, driven in part by the VAT hike, will stabilize at approximately 5% by the year's conclusion, indicating a manageable economic outlook.