Putin: I don't agree that Russian economy is in technical stagnation

Putin: I don't agree that Russian economy is in technical stagnation

Russian President Vladimir Putin has publicly disagreed with Sberbank CEO German Gref's assessment of the Russian economy, stating that the country is not in technical stagnation. Putin made these remarks during a press conference in Moscow, where he emphasized the resilience of the Russian economy despite ongoing challenges.

Gref, in contrast, has been vocal about his concerns regarding the economy's slowdown, warning that the country is at risk of a recession. He has called for the Central Bank to lower its key interest rate from the current 18% to around 14% by the end of the year, and even lower to 12% to stimulate economic recovery [1].

However, Putin's stance reflects a more optimistic view of the economy's performance. He highlighted that while there are challenges, such as high inflation and sanctions, the Russian economy has shown resilience and continued to grow. According to official data, the Russian economy expanded by 4.1% in 2023 and 4.3% in 2024, despite the ongoing conflict in Ukraine [1].

Putin also noted that the Central Bank's efforts to cool inflation through high interest rates have been effective, albeit at the cost of slowing economic growth. He believes that the economy is currently undergoing a necessary adjustment phase, rather than a stagnation.

Experts have differing views on the matter. While Gref and some business leaders argue that the economy is stagnating and that lower interest rates are necessary, others, such as Richard Portes, an expert on the Russian economy from the London Business School, maintain that the economy's problems are more deeply rooted and cannot be solved by merely lowering interest rates [1].

The debate surrounding the Russian economy's status is likely to continue, with Gref's comments adding pressure on the Central Bank to consider interest rate cuts at its next meeting on September 12. Putin's disagreement, however, suggests that the government may take a more cautious approach, focusing on long-term strategies rather than immediate rate reductions.

References:
[1] https://www.newsweek.com/putin-gref-sberbank-economy-russia-2124478
[2] https://www.euronews.com/business/2025/09/04/russian-economy-is-stagnating-amid-ukraine-war-says-sberbank-ceo
[3] https://kyivindependent.com/russias-economy-hits-technical-stagnation-biggest-bank-chief-warns-zero-growth/