Europe

Russian economy is on way to recovery, Putin says

  • Russian President Vladimir Putin speaks as he gives his annual state of the nation address in the Kremlin in Moscow, Russia, Thursday, Dec. 1, 2016. (AP Photo/Pavel Golovkin)

    Russian President Vladimir Putin speaks as he gives his annual state of the nation address in the Kremlin in Moscow, Russia, Thursday, Dec. 1, 2016. (AP Photo/Pavel Golovkin)  (The Associated Press)

  • Russian President Vladimir Putin speaks as he gives his annual state of the nation address in the Kremlin in Moscow, Russia, Thursday, Dec. 1, 2016. (AP Photo/Pavel Golovkin)

    Russian President Vladimir Putin speaks as he gives his annual state of the nation address in the Kremlin in Moscow, Russia, Thursday, Dec. 1, 2016. (AP Photo/Pavel Golovkin)  (The Associated Press)

Russian President Vladimir Putin says that the country's economy is on the way to recovery.

Speaking in his live state-of-the-nation address, Putin pointed at a growth in some sectors of industry and agriculture and pledged that positive trends will continue next year. He said agricultural exports this year will top $16 billion, exceeding weapons exports.

The Russian economy contracted 3.7 percent in 2015 and the recession has continued this year under the combined blow of low oil prices and Western sanctions.

Putin said the government should encourage growth by offering support to farmers and create incentives for small business.

He noted that inflation, which stood at nearly 13 percent last year, is expected to slow down to 6 percent this year.