Oyu Tolgoi Delay To Weigh On Growth

We have revised down our medium-term growth forecasts for Mongolia to reflect both the deteriorating global macroeconomic environment and an increasing likelihood that a new mining agreement for the Oyu Tolgoi copper project will be delayed into 2009. With output at the mine unlikely to begin until 2011 and as foreign investment growth is weighed down by constricting global credit, we now expect real GDP growth to average 12.8% annually between 2009 and 2012, down from our previous forecast of 18.8%.

To read the full article, please choose one of the following options: