Putin boasts about Russia's economy despite recession fears
President Vladimir Putin has hailed Russia's economic outlook, saying it has managed to curb inflation and ease its reliance on energy exports.
His optimistic account in a speech at the St Petersburg International Economic Forum contrasted with sombre statements by some members of his government, who warned at the same conference that Russia could face a recession.
Advertisement
Economic Minister Maxim Reshetnikov had said that the country is 'on the brink of going into a recession'.
Mr Putin mentioned the recession warnings, but emphasised that 'it mustn't be allowed'.
He pointed out that manufacturing industries have posted steady growth, allowing the country to reduce its reliance on oil and gas exports.
'The perception of Russian economy as based on raw materials and dependent on hydrocarbons exports have clearly become outdated,' Mr Putin said, adding that the economy grew by 1.5% in the first four months of 2025 and inflation has dropped from double digits to 9.6%.
Advertisement
Mr Putin has used the annual forum to highlight Russia's economic prowess and encourage foreign investment, but Western executives have shunned it after Moscow sent troops into Ukraine in 2022, leaving it to business leaders from Asia, Africa and Latin America.
The economy, hit with a slew of Western sanctions, has so far outperformed predictions.
High defence spending has propelled growth and kept unemployment low despite fuelling inflation.
Large recruiting bonuses for military enlistees and death benefits for those killed in Ukraine also have put more income into the country's poorer regions. But over the long term, inflation and a lack of foreign investments pose threats to the economy.
Advertisement
Economists have warned of mounting pressure on the economy and the likelihood it would stagnate due to lack of investment in sectors other than the military.
Mr Putin said the growth of military industries helped develop new technologies that have become available to the civilian sector.
He vowed to continue military modernisation, relying on lessons learned during the fighting in Ukraine.
'We will raise the capability of the Russian armed forces, modernize military infrastructure and equip the troops with cutting-edge equipment,' Mr Putin said.
Advertisement
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Western Telegraph
34 minutes ago
- Western Telegraph
Lammy urges Iran and US to keep talking as Middle East conflict continues
The Foreign Secretary met his Iranian counterpart Abbas Araghchi in Geneva on Friday alongside foreign ministers from France and Germany and the EU's foreign policy chief. Following the meeting, Mr Lammy said the Europeans were 'keen to continue ongoing discussions and negotiations with Iran, and we urge Iran to continue their talks with the United States'. Iranian foreign minister Abbas Araghchi said his country would not negotiate with the US while Israeli air strikes continued (Martial Trezzini/Keystone via AP) He added: 'We were clear: Iran cannot have a nuclear weapon.' Friday's meeting followed Donald Trump's statement that he would delay a decision on whether the US would join Israeli strikes against Iran for two weeks, raising the prospect of a negotiated solution to the crisis. German foreign minister Johann Wadephul said the group had left the room 'with the impression that the Iranian side is fundamentally ready to continue talking about all important issues'. But Mr Araghchi said Iran would not negotiate with the US as long as Israel continued to carry out airstrikes against the country. Tel Aviv's campaign continued on Friday, with Israel saying its aircraft had hit military targets including missile-manufacturing facilities as it continues to attack locations connected with Iran's nuclear programme. Iran insists its nuclear programme is entirely peaceful. Meanwhile, the UK Government has announced it will use charter flights to evacuate Britons stranded in Israel once the country's airspace reopens. Number 10 said on Friday morning the situation remains 'fast-moving' and it will continue to be monitored closely. A spokesman added: 'We are advising British nationals to continue to register their presence in Israel and the Occupied Palestinian Territories, to be contactable with further guidance on these flights.' Mr Lammy said work is under way to provide the flights 'based on levels of demand' from UK citizens who want to leave the region. 'The UK will provide charter flights for British nationals from Tel Aviv when airspace reopens,' he said. 'The safety of British nationals remains our top priority.' According to the Israeli government, some 22,000 tourists are seeking to board evacuation flights. It is unclear how many of these may be UK citizens. Government advice for British nationals in the country remains to follow local guidance, as well as to let officials know about their presence within Israel or the Occupied Palestinian Territories. Land routes out of Israel remain open and British staff are on hand to support UK nationals who have crossed the border, he added. The move follows criticism of the Foreign Office's initial response, which saw family members of embassy staff evacuated while UK citizens were not advised to leave and told to follow local guidance. The Government said the move to temporarily withdraw family members had been a 'precautionary measure'. On Friday, the Foreign Office announced that UK staff had also been evacuated from Iran, with the embassy continuing to operate remotely.
Telegraph
an hour ago
- Telegraph
Trump's Iran gambit is exposing just how irrelevant Putin and Xi really are
If you listened only to the ossified mandarins of international affairs, you'd think the age of American supremacy was already dead. ''Multipolarization' is a fact,' declared the latest report of the Munich Security Conference, a stale international relations gathering that has accomplished almost nothing in its 60 year history. Such people believe – or perhaps even hope – that American power has diminished and will continue to do so, a process some wish to hurry along by constraining Washington's freedom of action within their 'rules-based' international order. What must they be thinking now? As the White House contemplates joining Israel's strikes against Iran, observers may want to ask how many other nations maintain a long-range bomber fleet on a remote island in the middle of the Indian Ocean, capable of flying more than four thousand miles to drop the world's largest conventional bombs – 30,000 pound GBU-57 Massive Ordnance Penetrators – on Iran's most heavily protected nuclear facilities. They might also question what the other supposed 'poles' of the international order are doing. Russian President Vladimir Putin, who rules a country with an economy smaller than Italy's and a population lower than Bangladesh's – and who has for more than three years proved unable to win a war against a much smaller state – has been left languishing on the sidelines. Last week, he urged the two sides to reach a negotiated settlement. Recent reports suggest that Russia may be willing to play a role in such talks, but this is hardly a defiant stance for a country that in January signed with Tehran a 'comprehensive strategic partnership treaty'. The world is now seeing exactly how 'comprehensive' it truly is. Delusions of a multipolar world might also crash on reactions to the Middle East crisis in Beijing, where Chinese president Xi Jinping said on Tuesday that 'all parties should work to de-escalate the conflict as soon as possible and prevent the situation from worsening further'. A foreign ministry spokesman followed up with a public call on 'countries that have a special influence on Israel' – almost certainly meaning the United States – 'to take up their due responsibilities' and 'take immediate actions to cool down the situation'. Given such desperate pleading, clearly no Chinese expeditionary force will be rounding the mountains of Fordow to save Iran's underground uranium enrichment facility in a great power standoff against the United States. Instead, China's diplomatic chatter appears limited to urging its citizens to leave Israel and Iran as soon as possible. China's weak statements came on the same day that Trump, who made no acknowledgement of them, demanded Iran's 'unconditional surrender' and hinted that he has the ability to kill its supreme leader, Grand Ayatollah Ali Khamenei, at will. Trump has now set a two-week deadline to decide if the US will join Israel's strikes against Iran. Regardless of what he chooses to do, however, he stands as the only world leader who can comprehensibly project either military force or diplomatic leverage into regions far from home. Those who criticise his 'America First' agenda as 'isolationist' would do well to realise that the United States continues to maintain not just Diego Garcia, where the B-2s might well be revving their engines to fly out the world's biggest bomb, but at least 120 other military bases and facilities in 55 countries. Despite Biden-era cuts, US military spending still exceeds that of the next nine nations combined and is projected to increase in the coming years. Meanwhile, despite predictions of continuing decline, US economic growth has surged ahead of that of rival countries, and far exceeds its competitors in innovation, technology, and enterprise. It should be no surprise that after just five months back in office, Trump has initiated the first meaningful peace talks between Russia and Ukraine since their war erupted in 2022, brokered a standing peace deal between India and Pakistan in another potentially nuclear hot spot, claimed trillions of dollars in new foreign investment in the United States, moved toward more equitable trade relations with other countries, and restored national borders to a historic level of security. No other 'pole' could come even close to one of those feats. Munich's ageing mandarins may not live to see it, but the real American century could well be the current one. Paul du Quenoy is a historian and president of the Palm Beach Freedom Institute
The Independent
an hour ago
- The Independent
Experts hacks for helping parents with children save money
Families are facing significant financial strain due to persistent inflation and escalating childcare expenses, making strategic budgeting crucial. Experts advise regularly reviewing personal finances, checking for better deals on services like insurance and streaming, and actively switching providers for utilities such as broadband and energy. To reduce spending on children's items and activities, families should embrace pre-loved goods, utilize loyalty cards and railcards for discounts on days out, and seek out free local events. Parents should explore available support for school expenses, including council uniform grants and school-recycled uniform schemes. Significant government support is available for childcare costs, such as tax-free childcare and Universal Credit childcare claims, which many eligible families are not currently utilizing.
