Fri Jun 20 16:52:48 UTC 2025: **Summary:**
President Vladimir Putin addressed attendees at the St Petersburg International Economic Forum, emphasizing the need for “balanced growth” in the Russian economy and warning against a potential recession. He acknowledged concerns from economists regarding stagnation and the recent economic slowdown but insisted that such a downturn must be avoided through prudent budgetary, tax, and monetary policies. While acknowledging the role of the defense industry in recent economic growth, he asserted that other sectors like finance and IT have also contributed. The President also highlighted the importance of monitoring the health of various industries and individual enterprises. Other voices at the forum, including Deputy Prime Minister Alexander Novak and Sberbank CEO German Gref, advocated for interest rate cuts to stimulate investment. Putin underscored his commitment to continued military modernization, leveraging technology and cooperation with friendly nations, while also aiming to transfer defense-related technologies to the civilian sector. The forum was notable for the absence of Western executives due to the ongoing conflict in Ukraine and Western sanctions.
**News Article:**
**Putin Vows to Prevent Recession, Seeks “Balanced Growth” for Russian Economy**
**ST. PETERSBURG, RUSSIA** – President Vladimir Putin has made a strong statement against the possibility of a recession in Russia, telling attendees at the St Petersburg International Economic Forum on Friday that the country must pursue “balanced growth.”
Addressing government ministers, central bankers, and business leaders, Putin acknowledged concerns voiced by economists about a potential economic slowdown. “This must not be allowed to happen under any circumstances,” he stated, advocating for a “competent, well-thought-out budgetary, tax and monetary policy.”
The comments come amid growing economic anxieties, with Economy Minister Maxim Reshetnikov recently warning that the economy is on the brink of recession. The Bank of Russia has grappled with high inflation, raising interest rates to levels unseen since the early 2000s before recently implementing a slight reduction.
While Putin recognized the contribution of the defense industry, fueled by military spending related to the conflict in Ukraine, he insisted that sectors like finance and IT are also playing a crucial role. He stressed the need for officials to closely monitor the health of all industries and enterprises.
His assertion came as other high-profile attendees suggested policy shifts to stimulate growth. Deputy Prime Minister Alexander Novak called for immediate interest rate cuts to “heat up the economy,” and Sberbank CEO German Gref echoed this sentiment, urging faster rate reductions to incentivize corporate investment.
The St Petersburg forum, traditionally a platform for attracting foreign investment, has seen a noticeable shift in attendees since the onset of the war in Ukraine. Western executives largely shunned the event, leaving the stage to business leaders from Asia, Africa, and Latin America.
Despite Western sanctions, the Russian economy has performed better than initially predicted, largely driven by high defense spending and low unemployment. However, economists continue to warn of mounting pressure and the risk of stagnation due to a lack of investment in non-military sectors.
Putin used the forum to also reiterate his commitment to modernizing the Russian military, leveraging lessons learned in Ukraine and focusing on technological advancements. He also pledged to expand military-technical cooperation with friendly nations.
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