Mongolia economy to slowdown in 2009, bank officials say

Mongolia should expect some
slowdown in the growth of its economy due to the worldwide financial
crisis, according to officials at the European Bank for Reconstruction
and Development (EBRD). 

In a just released report,
entitled 2008 Transition Report, officials predicted the Mongolian economy
would slow to 7.3% this year from 8.5% last year, and drop by 3.4% in
2009. 

EBRD’s chief economist, Erik
Berglof, said sustained growth in the region’s economy in the early
stages of the global crisis was “a testament to remarkable reform
achievements.” Currently, Berglof said, countries like Mongolia face
“much less benign international background and outflows of capital
from emerging markets” and that “risk aversion and the recession
in key OECD economies would test the resilience of transition countries.” 

The EBRD report also indicated
that growth in Central Europe and the Baltics (CEB) is expected to fall
to 4.3% in 2008 from 6.3% last year, and further down to 2.2% in 2009.
Growth in southeastern Europe is expected to rise to 6.5% this year
from 6.2% in 2007, but then will drop back to 3.1% in 2009. 

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