Credit Crunch: Not Immune

The Mongolian banking sector is not immune to the global credit contraction and we expect lending growth to fall off markedly into 2009. This will weigh on headline economic growth, which we now forecast to come in at 7.5% in 2009, down from an original projection of 10.5%. We still expect a key mining deal with Anglo-Australian firm Rio Tinto and Canadian Ivanhoe to reach agreement in 2009 though, ensuring that real GDP growth remains relatively robust.

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