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GKI forecasts 5% annual inflation for 2009

Economic think tank GKI predicts 5% annual average inflation for this year in its latest forecast released on Tuesday, far higher than the 3.5% inflation forecast in the preceding report published in March.

As compared to the 6.7% government projection for this year's GDP contraction, GKI expects contraction of 6.5%. GKI put the rate of GDP decline between 4% and 5% in its March forecast.

The higher-than-earlier-expected GDP decline stems from a 15% fall in exports compared to a 9% decrease projected earlier, while investments are seen slipping 8% as against a 5% drop forecast in March. (MTI – Econews)