Russian Prime Minister Vladimir Putin promised Thursday he would modernize Russia's economy and protect it from "outside shocks" if elected president in March 2012.

In his annual televised call-in, Putin pledged to diversify and modernize the country's economy, develop the social sphere and protect Russia from "foreign impostors".

"If the people consider it possible to entrust this work to me, I will do it with pleasure," Putin said.

He warned the looming credit crunch in the United States and the debt crisis in the European Union could lead to recession that would also hinder Russia's economic development.

"This brings us absolutely no joy, because it could affect us, too," Putin said.

Putin also said Russia's gross domestic product in 2011 would increase 4.2-4.5 percent and the country's industrial output would rise 5.1 percent. He also forecast Russia's real wages would grow 2.9 percent.

"Inflation this year will be about 6 percent, we are already drawing level with the European countries. We need to sustain this downward trend," he said.

Putin, 59, who stepped down in 2008 after two presidential terms, announced in September he would run again for the presidency in 2012.