Speaking at the St. Petersburg International Economic Forum (SPIEF) on Friday, Putin explained that Russia’s annual GDP growth rate of four percent is now primarily driven by sectors outside oil and gas.
“Russia’s non-oil-and-gas GDP growth reached 7.2 percent in 2023. In 2024, it grew by 4.9 percent—almost five percent. These figures are more convincing and grounded than general GDP data,” Putin, who shared the same stage as Indonesian President Prabowo Subianto, stated.
“In other words, raw commodity sectors no longer play a dominant role in shaping Russia’s economic dynamics,” he stated.
According to Putin, the oil and gas sector is now considered "no longer profitable."
He noted that over the past two years, Russia has generated more income from agriculture, industry, public works, construction, logistics, services, finance, and information technology.
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He also highlighted that support from millions of Russian entrepreneurs has helped transform the country’s economy into one that is fast-growing, resilient, and diverse.
“The outdated image of the Russian economy being solely reliant on raw commodity exports is no longer valid. That belongs to the past—our reality has changed,” Putin stated.
He claimed that in terms of the GDP volume, Russia now ranks fourth globally and first in Europe.
“But that alone is not enough. It is essential for us to maintain our position as one of the world’s strongest economies,” Putin stressed.
“We must create a business-friendly climate domestically, with support from friendly nations that provide resources. It is also our important task to expand industrial capacity and work together to ensure this economic transition is balanced,” he remarked.
Putin then highlighted several key achievements in the Russian economy, including a reduction in inflation to 9.6 percent, youth unemployment at 7.5 percent, and a poverty rate of 7.2 percent in 2024.
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Translator: Primayanti
Editor: Rahmad Nasution
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