Russian President Vladimir Putin delivered a speech at the St. Petersburg International Economic Forum where he discussed the state of the Russian economy. Despite Western sanctions imposed on Russia, the economy has not been significantly affected. In fact, according to the Rosstat statistical office, GDP rose by 5.4% in the first quarter. This growth has been largely attributed to increased state expenditure on armaments and the military, as well as higher salaries and payments to families of fallen and injured personnel.
Putin’s remarks come at a time of economic uncertainty but also highlight some positive indicators for the Russian economy. Additionally, there are labor shortages in the country leading to rising wages. Analysts have raised concerns about the sustainability of this trend and whether it will continue in the long term. According to Putin, the economy is experiencing growth of around 5% based on the increase in gross domestic product (GDP) over the first half of the year.