The meeting was attended by Prime Minister Mikhail Mishustin, Chief of Staff of the Presidential Executive Office Anton Vaino, First Deputy Prime Minister Denis Manturov, Deputy Prime Minister – Chief of the Government Staff Dmitry Grigorenko, deputy prime ministers Tatyana Golikova, Alexander Novak, Marat Khusnullin, Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin (via videoconference), Minister of Economic Development Maxim Reshetnikov, Minister of Finance Anton Siluanov, and Governor of the Central Bank Elvira Nabiullina.
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President of Russia Vladimir Putin: Colleagues, good afternoon,
Today, we will hold our first meeting this year to discuss economic issues.
In this context, I suggest we examine some interim results of the domestic economy’s performance over the past year. We will discuss forecasts, development trends in light of current factors and challenges, alongside the situation in both domestic and international markets. Naturally, we will also conduct a detailed analysis of the mechanisms for achieving our economic objectives, supporting the growth essential for the nation’s confident and dynamic progress.
I would note that Russia’s GDP grew by one percent last year. This is lower than the growth rates observed earlier – 4.1 percent in 2023 and 4.3 percent in 2024 – as we are well aware.
However, we also understand that this slowdown was not only anticipated – it could even be described as deliberate, stemming from targeted measures to curb inflation. While price growth stood at 9.5 percent in 2024, this figure was reduced to 5.6 percent by the end of last year.
We all recognise the critical importance of moderate and predictable price dynamics for the well-being of Russian families, for the operation of enterprises and organisations, for public finances, and for the investment process and planning.
At the beginning of this year, inflation has, admittedly, accelerated slightly. As of January 26, it stood at 6.4 percent year-on-year. This was also expected, partly due to adjustments in the tax system, particularly the increase in VAT. According to assessments by both the Government and the Central Bank – that is, by your own estimates, colleagues – the impact of these changes on prices will be short-lived.
In any case, we have had such experiences before – we witnessed this during the previous increase, and that was how it unfolded. I reiterate, the practice exists, and I believe there is every reason to assume that it will be the same now. We will see, of course, but expectations are indeed that this period will be short-term, and by the end of the year, inflation should decrease again to approximately 5 percent.
I draw your attention to what we have always emphasised: it is necessary to monitor not only price dynamics – it is important to see the full picture, all macroeconomic indicators. In this regard, I would like to remind everyone of the tasks set before the Government and the Central Bank. These were outlined at the December meeting of the Council for Strategic Development and National Projects.
The objective is clear: we must ensure the recovery of the domestic economy, improve the business climate, and boost investment activity with a focus on increasing labour productivity. Corresponding measures have been included in the Plan of Structural Changes in the Economy, which is designed until 2030.
I request that it be implemented rhythmically, according to the schedule, so that the first significant results become apparent already this year. I am referring to both an increase in economic growth rates and a reduction in inflation. I would like to remind you that this Plan of Structural Changes, which I have just mentioned, was approved by the Government at the end of last year, in November – is that correct, Mr Mishustin?
At the same time, I would like to emphasise once again that increasing labour productivity is a priority task amid labour shortages in certain sectors and industries. Here, it is necessary to more actively implement automated systems and industrial robots, digital platforms, and artificial intelligence solutions.
I also ask my colleagues to pay increased attention to improving the employment structure in the economy. It is important for us to make it more efficient by creating modern, well-paid jobs in sectors with high labour productivity. This is significant both for specialists already working at enterprises and companies, and for those who are still choosing their future profession or studying at universities, colleges, or technical schools.
In short, what we need to ensure is a new level of qualitative, intensive development of the economy and, consequently, of the country as a whole.
Let us proceed to the discussion. Please, Mr Reshetnikov, you have the floor.
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