Russian Economy Grows by 10%, Retains 4th Place in PPP Rankings - Reshetnikov

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Russian President Vladimir Putin held a working meeting with Minister of Economic Development Maxim Reshetnikov, during which they discussed the results of economic development over the past years, the current situation, and future tasks amid external pressure and structural changes.

Reshetnikov noted that over the past three years, the Russian economy has grown by about 10% in real terms. He described these rates as high, especially considering the sanctions and the need to restructure entire sectors.

Reshetnikov emphasized that Russia maintains its position as the fourth-largest economy in the world in terms of purchasing power parity and will be able to retain this status in the near future. He also highlighted the GDP per capita indicator, stating that if in 2017 it was around 43% of the U.S. level, by the end of 2025 it approached 56%.

According to the minister, this indicates a reduction in the economic gap with the United States, while several European countries, on the contrary, have increased their lag during this period. Reshetnikov noted that the Russian economy grew at rates that in some periods exceeded the dynamics of the U.S. economy.

Reshetnikov also pointed to the cyclical nature of economic processes. He explained that after a period of intensive growth, a phase of stabilization and structural adjustment inevitably follows. This is the phase, he said, that the Russian economy is currently experiencing.

Among the key indicators of recent years, Reshetnikov highlighted the growth in investments. According to the Ministry of Economic Development, the volume of investment in the economy increased by more than 50% compared to previous periods. The share of investment in GDP exceeded 23%, which was one of the highest levels in a long time.

Separately, the minister focused on the dynamics of manufacturing industry, calling it one of the drivers of economic growth. Putin, during the discussion, clarified the economic growth indicators for 2023-2025, noting an average value of 5.3%.

Reshetnikov explained that this figure reflects the overall dynamics of the three-year period and demonstrates the resilience of the Russian economy under sanctions, logistical changes, and external restrictions. He added that the accumulated potential and measures taken by the state have allowed the economy to maintain stability and adapt to new conditions.