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CTV News
2 days ago
- Business
- CTV News
Putin boasts about Russia's economy despite recession fears
Russian President Vladimir Putin speaks at a plenary session of the St. Petersburg International Economic Forum in St. Petersburg, Russia, Friday, June 20, 2025. (Vyacheslav Viktorov/ Roscongress Foundation via AP) ST. PETERSBURG, Russia — President Vladimir Putin on Friday 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 somber statements by some members of his government who warned at the same conference that Russia could face a recession. Economic Minister Maxim Reshetnikov had said Thursday that the country is 'on the brink of going into a recession.' Putin mentioned the recession warnings, but emphasized 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'The perception of Russian economy as based on raw materials and dependent on hydrocarbons exports have clearly become outdated,' Putin said, adding that the economy grew by 1.5% in the first four months of 2025 and inflation has dropped from double digits to 9.6%. 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 defense spending has propelled growth and kept unemployment low despite fueling 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. 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. Putin said the growth of military industries helped develop new technologies that have become available to the civilian sector. He vowed to continue military modernization, 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,' Putin said. The Associated Press
Yahoo
15-06-2025
- Business
- Yahoo
Russians struggle with 'crazy' prices
Russian pensioner Roman Paltievich stared at the prices for apricots, tomatoes and watermelons stacked high on stalls at a Moscow market -- foods that he now struggles to fit into his budget. "The prices are crazy," lamented the 84-year-old, who said he can no longer afford cherries -- or even potatoes, a staple that is now three times more expensive than a year ago. Russia's three-year-long military offensive on Ukraine has caused inflation to surge at home, a thorn in the side for the Kremlin, which strives to shield Russians from the fallout of its campaign. Western sanctions have disrupted supply chains and dozens of consumer brands have left the country, while inflation is now running above 10 percent. Meanwhile, deep labour shortages caused by massive recruitment by the army and arms manufacturers, have seen both salaries and prices jump higher. Russia's Central Bank last week cut interest rates from a two-decade high, saying inflation -- including food prices -- was starting to come under control. But for many hard-pressed Russians, it does not feel that way. Paltievich's wife, Tatyana, stood next to him clutching a small punnet of strawberries -- a precious treat for her grandchildren that set her back 400 rubles ($5). "We survived 1991, so now we're not afraid of anything," she said defiantly, in reference to the collapse of the Soviet Union and the economic chaos that followed. - Filling up the fridge - Many of those navigating the aisles at Moscow's Preobrazhensky market were also worried about high prices. "I came here to buy chicken for my granddaughter. It's more expensive in the supermarkets, so I don't buy there anymore," Nikolai Kucherov, a 62-year-old freelance artist told AFP. "I had to forget about travelling. For the past three or four years, I've only been thinking about filling up the fridge," he said. The Kremlin has hailed Russia's economic performance since it ordered its troops into Ukraine in February 2022. A huge surge in spending on the military has helped Moscow defy predictions that sanctions would collapse the Russian economy. Engineer Konstantin Zelenkov, 38, is one of those who have benefited from rising wages amid the government spending boom. "Some things are becoming more expensive but salaries are rising too, so it's staying roughly the same," he told AFP. Central bank chief Elvira Nabiullina has also pointed to rising wages and on Friday said inflation was starting to moderate, though it remains well above the institution's four percent target. "The high interest rate has led to a significant slowdown in inflation," she told reporters. Overall "the rate of increase in food prices has slowed", she added. But even Russian President Vladimir Putin was forced recently to address fears over a potato shortage that sent prices for the staple soaring. For many across Russia, price rises feel never-ending. "Starting even with bread, everything is getting more and more expensive," Irina Yakovleva, 68, said. "We just have to limit ourselves," she added. bur/djt/lth
