NIZHNY TAGIL — Russian prime minister Mikhail Fradkov is convinced that Russia could lead the world economy, he said at the Magistral 2005 transport exhibition in the Urals city of Nizhny Tagil on Friday.

The premier said Russia had great potential, which had to be used effectively. He stressed the need to make Russia a modern and competitive country. “It’s not enough to declare it, we have to act and take practical measures,” he said.

Russia had “colossal potential”, not just in terms of natural resources but also in terms of intellect and “tradition to produce high quality products,” he claimed. “We have something to be proud of, but life continues, global economy develops and we have to do a lot,” he concluded.

Last month, Russia’s federal statistics service said Russia was ahead of industrially developed nations in terms of GDP growth. Russia’s real GDP in the first quarter of this year grew 5.2 percent compared with the same period last year, against 2.7 percent in Britain, 3.3 percent in Canada, 2.8 percent in the U.S., 1.9 percent in France and 0.8 percent in Japan. In Germany, GDP dropped 0.3 percent, and it slipped 0.2 percent in Italy.

Russia’s industrial production increased 4 percent from January to June 2005, while it rose 0.1 percent in Britain, 2.1 percent in Germany, 3.2 percent in Canada, 2.9 percent in the U.S., 1.1 percent in France, 1 percent in Japan. In Italy, it fell 2.3 percent.

Meanwhile, Russia’s economy ministry had revised its GDP forecast down from 6.5 percent to 5.8 percent for this year, and from 5.9 to 5.6 percent for next year. In the estimation of the European Bank for Reconstruction and Development, Russia’s GDP won’t rise above 5.2 percent this year, while Russia needs a 7.2 percent growth to double its GDP from 2003 to 2012 – an ambitious goal set by President Putin.