Russia's economy grew just 1% in 2025, says Putin
Business
Putin said Russia's economy grew just 1% in 2025—a big drop from previous years and well below what was expected.
President Putin called the slowdown intentional, saying it's meant to bring down inflation, which is still higher than the government's target.
Russia faces shrinking manufacturing and falling oil revenues
The drop comes as Russia faces shrinking manufacturing, falling oil and gas revenues due to sanctions and war costs, and heavy reliance on Chinese imports (with China becoming Russia's largest trading partner).
The central bank is now cutting interest rates to fight off a possible recession, but with half the budget going to military spending and reserves dropping fast, economic challenges are piling up.