Russia cuts economic growth forecast to 1.5%

Russia sees economic growth in 2025 slowing to 1.5 per cent, far below the earlier 2.5 percent forecast, as high interest rates imposed to reduce inflation have stifled borrowing, Finance Minister Anton Siluanov told President Vladimir Putin.

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Russia's war economy grew robustly at 4.18 in 2023 and 4.3 per cent in 2024, far faster than G7 countries, despite multiple rounds of Western sanctions imposed after its invasion of Ukraine in 2022, but it is slowing sharply this year.

Economy Minister Maxim Reshetnikov warned in June that Russia was on the brink of slipping into recession unless monetary policy changed.