Overview

• Economy Minister Maxim Reshetnikov warned at the St. Petersburg International Economic Forum that Russia is on the verge of recession based on current business sentiment and lagging data.
• President Vladimir Putin told forum attendees that a recession must be prevented under any circumstances and called for balanced growth.
• The Central Bank cut its key interest rate to 20% earlier this month but resisted deeper reductions amid persistent annual inflation near 10%.
• Official figures show first-quarter GDP growth slowed to 1.4% year-on-year, the weakest quarterly pace in two years.
• High defense spending has propped up economic performance but experts caution that labor shortages, weak foreign investment, and rising prices threaten long-term stability.