Russia's GDP grew 6.8 percent from January to November this year, Deputy Prime Minister Alexander Zhukov said on Wednesday.

"This year, our economic growth can reach 7 percent. This is a rather good index," the Itar-Tass news agency quoted Zhukov as saying.

The government's forecasts of GDP growth of this year were 6.3 percent. Industrial production grew 4.1 percent in January to October 2006 against 3.7 percent in the same period last year. Zhukov stressed the need for balanced financial and budget policy. Raw material prices can "not only grow, but also decline," he said.

It is necessary to maintain a considerable margin of safety in condition of fluctuating raw material prices, as well as reduce Russia's dependence on oil and gas, Zhukov said.

Zhukov also stressed the need for measures to further the diversification of the economy, such as encouraging investments.

Investments grew 12.9 percent in January to November this year and "this is the most gratifying figure in our economic development this year," he said.

Zhukov said foreign investments in January-September 2006 stood at 35.3 billion U.S. dollars, compared to 13 billion dollars in 2005.