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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