Russia reports moderate economic growth despite infrastructure damage

Russian President Vladimir Putin reported that the national economy is experiencing moderate but positive growth. Preliminary data suggests the economy could grow by approximately 1% this year, with GDP increasing by 0.6% in the first half of the year and 1.3% in the second quarter.

Addressing recent attacks on industrial and infrastructure targets, Putin stated that while these incidents cause damage, they will not have critical consequences for the Russian economy. He noted that trade infrastructure remains functional and instructed the government to prepare a program to rebuild damaged logistics and storage facilities using modern technological standards.

Putin highlighted a significant increase in fixed capital investment, which rose by over 40% between 2019 and 2024, driven largely by large-scale industrial and export-oriented infrastructure projects. He emphasized the need for a new investment cycle focused on domestic demand, technological development, and digitalization. To support regional stability, he announced that at least 100 billion rubles (approximately 1.01 billion euros) would be distributed to regions facing difficult budget situations.