Russian Economy Shows Steady Growth Despite Western Sanctions

NOVO-OGARYOVO (Moscow Region) (Sputnik) - Russian economy grew 1.4 percent last year, while the inflation rate has reached record lows despite economic sanctions imposed by Western countries, Russian President Vladimir Putin said.

"In our country, active efforts are being made to improve macroeconomic stability. Russian GDP increased 1.4 percent last year, inflation indicators slowed to record values. Last year, the [price] increase was 2.5 percent and it continues to slow down this year," Putin said late Wednesday.

The Russian Economic Development Ministry said earlier in January that Russian inflation in 2018 could be below 4 percent all year long, while the state budget is set to show a surplus of about 1 percent of GDP in 2018 and the National Welfare Fund would rise by some $50 billion.

Russia faced an economic setback after the United States and the European Union imposed sanctions against Moscow in 2014 following the escalation of the Ukrainian crisis and Crimea's unification with Russia. However, the Russian economy ultimately has started to show signs of recovery after a number of economic reforms were introduced.