Russian President Vladimir Putin praised Russia's economy at a forum in St. Petersburg. But his own experts painted a bleak picture of the situation, focus.de reports.
Putin praised Russia's economic prospects on Friday, saying the country had managed to curb inflation and reduce its dependence on energy exports.
His upbeat performance in a speech at the International Economic Forum in St. Petersburg contrasted with dour comments from some members of his government who warned at the same conference that Russia could be facing recession. Economy Minister Maxim Reshetnikov said the country was “on the brink of recession.”
Russian Central Bank Governor Elvira Nabiullina said reserves had largely been depleted and many companies were now facing labor shortages.
“The idea that the Russian economy is based on raw materials and dependent on hydrocarbon exports is clearly outdated,” Putin said. The Russian president used the annual forum to highlight Russia’s supposed economic power and encourage foreign investment. But Western leaders did not attend the event, and they are also reluctant to invest in the authoritarian state since Moscow invaded Ukraine in 2022.
Russian officials say the economy, which has been hit by a series of Western sanctions, has so far outperformed forecasts. But the data is provided by the state and is considered unreliable. There have been repeated doubts about the strength of the Russian economy in recent times. While high defense spending has been said to have boosted growth and kept unemployment low, inflation has also been fueled significantly, with the Russian Central Bank's key interest rate currently at 21%. Meanwhile, the prices of many everyday goods have been rising dramatically.