MOSCOW, April 17 (Reuters) - Russia's economy grew 6.4 percent in the first quarter of this year, compared to 3.7 percent in the same period of 2002, Prime Minister Mikhail Kasyanov said on Thursday.
"I believe that this figure is quite an encouraging factor," Kasyanov told the weekly cabinet meeting. "If we do not remain consistent, we could lose this."
Kasyanov also said that Russia's industrial output rose by six percent in the first three months, the fastest quarterly in increase in the past three years.
"Growth was achieved through a continued improvement in the oil and metal sectors as well as in the engineering and processing industries," Kasyanov said.
He noted, however, that light industry had lagged under intense pressure from foreign competition.
"During the past year, profitability in this sector fell to three percent and the number of loss-making companies increased," he said.
Russia's gross domestic product (GDP) grew 4.3 percent in 2002.
Russia, the world's second largest crude exporter, had been aiming for 3.5-4.4 percent growth in 2003 depending on global crude prices but after a strong performance in the first two months of the year, officials raised forecasts to 4.5 percent.
Economists have said that Russia's economy looks set for a stronger than expected 2003 on the back of soaring exports, rising investment and robust domestic demand propelled by high oil and commodities prices.
They warned, however, that volatility in the price of oil, Russia's main export, and a strong rouble may dent what looked like an optimistic picture at the start of the year.