Head of Sberbank Herman Gref stated that the Russian economy entered a phase of 'technical stagnation' in the second quarter of 2025. He emphasized this during his speech at the Eastern Economic Forum in Vladivostok.
'The second quarter can actually be considered as technical stagnation. July and August show quite obvious signs that we are approaching zero markers,' Gref noted.
He also pointed out that a major issue is the high key interest rate. According to him, by the end of the year it will be 14%, but this is insufficient for boosting the economy.
'The interest rate that could invigorate the economy should be at the level of 12% and below,' Gref added.
It should be noted that stagnation is a prolonged economic stagnation accompanied by low GDP growth rates, high unemployment, and a decline in wages and living standards.
Head of Sberbank Herman Gref defined the technical stagnation of the Russian economy in the second quarter of 2025 during his speech at the economic forum. According to him, the high rate is crucial and needs to be lowered to 12% to invigorate the economy.