8 Oct 2009 14:59

Kyrgyz economy could grow 2.2% in 2009

BISHKEK. Oct 8 (Interfax) - Kyrgyzstan's Economic Development Ministry has improved its 2009 GDP growth forecast to 2.2% from 0.9%.

Real GDP could grow 3.5% instead of 2.5% in 2010, the ministry said in a press release. GDP growth could average at 3.6% in 2011-2012.

Inflation of 4% is expected in 2009 instead of the previously forecast 15%.

The ministry said the new forecasts were based on improved socioeconomic indicators for January-August, the easing of the global financial and economic crisis and consultations on the outlook for 2010-2012 with the International Monetary Fund (IMF).

Official statistics say GDP grew 3.4% in real terms in January-August, driven by growth of 9% in agriculture, 24.1% in construction and 4% in the services sector.

The IMF expects the Kyrgyz economy to grow 1%-2% in 2009 and up to 3% in 2010.

The National Bank has lowered its 2009 inflation forecast to 7.5% from 15%.

GDP grew 7.5% in 2008 and inflation was 20%.