Russian GDP growth expected to be 1 percent in 2025 - Novak

The Russian economy grew 1% in 2025 according to preliminary data, Russia's Deputy Prime Minister Alexander Novak said at a meeting of the Federation Council's Economic Policy Committee.

"In 2025, despite all the challenges facing our economy, growth was maintained, although slower than in previous years. I would like to recall that economic growth was 4.3% in 2023 and 4.1% in 2024. We expect 1% for 2025," Novak said.

According to him, the slowdown in growth is primarily related "to tight monetary policy, and to tight fiscal policy, associated with inflation targeting".

"And it should be noted that this objective is being achieved, given that inflation was 9.5% last year, while we reached 5.6% by the end of the year. This is significantly lower than the forecast of 6.8%," Novak said.

Positive economic dynamics were ensured among other things by an increase in industrial production, particularly in manufacturing, the official said.