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  • 4 months ago
President Vladimir Putin stated that Russia is intentionally slowing its economic growth to control inflation, despite central bank data showing two consecutive quarters of GDP decline. He dismissed recession concerns and hinted at possible tax reforms, including a luxury tax and VAT adjustments, to stabilize the budget amid high interest rates and ongoing sanctions.
Transcript
00:00President Vladimir Putin said on Thursday that Russia is deliberately slowing its economic growth in order to suppress inflation
00:07and that the world's second largest oil exporter was far away from a recession.
00:12A graph published in Russian Central Bank's report earlier in September
00:15showed two consecutive quarters of gross domestic product GDP decline in quarter-on-quarter terms
00:21aligning with the common definition of technical recession.
00:24Putin downplayed concerns about a downturn, saying the Russian economy remains far away from a recession.
00:33The United States, Europe and allies have imposed more than 25,000 different sanctions on Russia
00:38over the 2022 war in Ukraine and the 2014 annexation of Crimea in a bid to sink Russia's economy
00:45and undermine support for Putin.
00:48Russia's war economy grew at 4.1 percent in 2023 and 4.3 percent in 2024,
00:54far faster than G7 countries, but it is slowing sharply under the weight of high interest rates.
01:00Putin also said on Thursday that introducing a tax on luxury could be a reasonable step,
01:05but cautioned against going too far with the idea.
01:09Sources told Reuters the Russian government is weighing a possible increase in value-added tax,
01:13or VAT, to keep the budget deficit in check and maintain reserves.
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