President Putin demands economic stimulus measures after GDP contraction

Russian President Vladimir Putin held a meeting with key officials including Central Bank Governor Elvira Nabiullina, Finance Minister Anton Siluanov, and advisor Maxim Oreshkin to address recent economic performance. The Russian economy contracted by 1.8% in the first two months of 2025. This downturn follows a slowing growth rate that fell to approximately 1% in 2025 from 4.9% in 2024, attributed by officials to tight monetary policy and Western sanctions on oil revenue. While the government previously forecast 1.3% growth for this year, they warned that this estimate may be revised downward due to poor early performance. In contrast, the International Monetary Fund (IMF) raised its 2026 GDP growth projection for Russia to 1.1%, citing higher oil prices related to Middle East tensions. During the meeting, Putin rejected calendar-related excuses for the contraction. He ordered his economic team to develop and present proposals for additional measures to stimulate growth, noting that current indicators have failed to meet official expectations.