Overview
- President Vladimir Putin confirmed GDP grew 1% in 2025, following gains of 4.1% in 2023 and 4.3% in 2024.
- Deputy Prime Minister Alexander Novak said the outcome reflected tight monetary and fiscal policy plus explicit inflation targeting.
- Inflation eased to 5.6% from 9.5% over the year, with November and December readings at roughly 1.2% and 0.6% on a seasonally adjusted annualized basis.
- The Bank of Russia cut its key rate to 16% in December as price pressures cooled, while Rosstat projects a return to the 4% target only in 2027.
- Budget figures showed oil and gas revenues at a five-year low, and Putin called for steps to improve the business climate and boost investment.