Political stability in the volatile ex-Soviet nation depends on its economic fundamentals, especially after a wave of anti-government protests that rocked the strategically placed nation until about a year ago.
"GDP (Gross Domestic Product) growth will be around 7 percent, 6 percent at the lowest," Economic Development Minister Akylbek Japarov told reporters.
The government has previosly forecast a growth of 8.0-8.2 percent this year, same as in 2007. Japarov also said inflation could exceed the planned 15 percent.
Consumer prices rose 15.2 percent in the first half of 2008, led by foodstuffs and fuel. Bread price hikes have historically triggered public discontent throughout the former
The country will have only 10.5 billion cubic metres (bcm) of water in its key Toktogul reservoir by October when the cold season begins, Japarov said.
It needs 13-15 bcm to live through the winter without power cuts.
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