Russia’s economy grew by 4.1% in 2024, Russian Prime Minister Mikhail Mishustin told President Vladimir Putin today, slightly better than an official forecast of 3.9%.
The country’s gross domestic product reached a record-high of 200 trillion roubles ($2.06 trillion), Mishustin told Putin at the meeting, which was broadcast on state TV.
He also said official growth figures for 2023 had been revised up from 3.6% to 4.1%.
Putin welcomed the results, saying they were “good” and “satisfactory”, but restated his wish for inflation to drop from its elevated level of 9.5% in 2024.
He noted, however, that Russian economic growth was better than what he called growth in “so-called developed countries” before going on to cite lower 2024 growth figures for the US, Germany and France.
The Russian economy has defied Western predictions it would collapse due to sanctions on Moscow over its war in Ukraine, with higher military spending driving growth, but also fuelling consumer prices.
Inflation has become a headache for Russia’s economy and for consumers who have seen prices for staple foods rise in supermarkets.
The central bank, which says it has seen signs of economic overheating, has maintained its benchmark interest rate at 21%, the highest level in 20 years in an effort to reduce inflation. High interests rates, along with labour shortages, have strained the economy in recent months.
