Risks of stagnation or recession in Russian economy cannot be allowed to materialize - Putin

ST. PETERSBURG. June 20 (Interfax) - The strategic goal for 2025 is a transition to balanced growth, inflation in Russia is falling faster than expected, and monetary policy is now being eased, but the risks of stagnation or recession in the Russian economy cannot be allowed to materialize, Russian President Vladimir Putin said at a plenary session at the St. Petersburg International Economic Forum.

"Our most important objective this year is to ensure the economy's transition to a balanced growth trajectory. What does this mean? We must achieve moderate inflation and low unemployment," he said.

Putin said annual inflation had fallen to 9.6% as of June 16. "Both the government's dynamic efforts to develop the supply-side economy and the Central Bank's responsible actions played a role here," he said.

"I'd like to draw your attention to the fact that inflation dynamics are proving to be better than many experts and even than the Bank of Russia expected. This has already enabled us to start carefully easing monetary policy," Putin said.

"But changes in consumer prices are by no means the whole picture. Balanced growth is moderate inflation, low unemployment and ongoing positive economic dynamics. It is vital to keep all indicators of the well-being of our industries and companies in focus," he said.

Putin recalled that GDP had grown 1.5% in January-April, including 1.9% in April.

"Some specialists and experts are pointing to risks of stagnation and even recession. This, of course, must not be allowed under any circumstances," Putin said.

"We need to pursue a smart, well-conceived fiscal and monetary policy, to tailor them primarily to support and stimulate growth, while of course ensuring macroeconomic, inflationary and financial stability," Putin said.

"Our strategic vector is precisely to change the structure of the domestic economy actively, consistently, step by step," he said.