Putin Notes GDP Decline, Urges Economic Recovery

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Russian President Vladimir Putin acknowledged a negative trend in key macroeconomic indicators at the start of the year during an economic meeting, emphasizing the need to return the economy to a trajectory of sustainable growth.

Opening the session, the president noted that January statistics, while not surprising, confirmed a slowdown in economic activity. According to him, the gross domestic product (GDP) in January was 2.1% lower than the previous year, and industrial production contracted by 0.8%. However, mining and extraction of minerals showed a slight increase.

Putin highlighted that part of the decline was due to the so-called calendar factor — fewer working days in January compared to the previous year. Nevertheless, he stressed that the main task remains restoring sustainable economic growth while simultaneously reducing inflation and maintaining labor market stability.

The president pointed out that the unemployment rate remains low, standing at 2.2% in January. Consumer spending continues to grow, and inflation remains below 6% on an annual basis.

Separately, the head of state emphasized the importance of maintaining macroeconomic policy balance. He stressed the need for close attention to the growth of money supply, credit dynamics, and the stability of the budgetary system.

Putin also called for greater focus on improving employment quality and attracting personnel to high-tech sectors, where the greatest added value is created. Additionally, he highlighted the importance of timely response to external risks, which are intensifying amid tense global market conditions.

The president reminded that in light of rising global energy prices, Russian oil and gas companies should direct additional revenues towards reducing debt and settling accounts with Russian banks. A similar approach, he said, is necessary when planning the federal budget to ensure its long-term sustainability.

Putin noted that the government is already working on these issues, and their results will be discussed in detail during the meeting.