Vladimir Putin revealed that Russia's economy slowed last year, growing just 1%. Inflation expanded following tax restructuring, but the impact is expected to be short-term.
On 3 February, Russian President Vladimir Putin disclosed that the country's economic growth over the past year was sluggish, while inflation began to rise early this year due to government economic policy measures.
Putin said during an economic meeting on Tuesday that Russia's gross domestic product (GDP) last year grew by only 1%, emphasizing that this slowdown was anticipated by the government and resulted from measures it implemented. He added that the reduced growth is linked to policies aimed at controlling inflation to maintain the country's long-term economic stability.
At the same time, Putin acknowledged that in early 2026, Russia's inflation rate increased slightly, as previously assessed by the government. The main cause was the restructuring of the tax system, especially the increase in value-added tax (VAT). However, according to official evaluations, the impact of the tax adjustments on prices of goods and services is expected to be short-term, with the situation gradually easing as the economy adapts.
The Russian government confirmed it will closely monitor the economic situation and continue implementing policies to control inflation and maintain economic growth at an appropriate level.
Source: AP