Russia's economy continued to expand last year, at the same time as economies around the world slipped into recession.

Gross domestic product (GDP) was up a sturdy 5% in 2001, according to the preliminary results, published by the State Statistics Committee.

The growth was fuelled mainly by increased oil and gas export prices, as well as by a surge in domestic demand and output.

The result was in line with the government expectations, but the inflation rate exceeded state predictions.

Inflation fears

Monthly consumer price inflation in January leapt to a three-year high of 3.1%, well the forecast 2.7%.

This makes the state's 14% annual goal look at least problematic.

Due to the fears of inflation and strong lobbying from industry, the government failed to fulfil its plans of 35% rise in tariffs.

Russia's officials promise to look again at those prices in mid-2000.