UPDATE 2-Kazakhstan sees GDP growth of 5-7 pct in 2009-2011

(Adds oil output, annual inflation outlook for 2009-2011)

ASTANA, Sept 11 (Reuters) - Kazakhstan's economy will grow at 5-7 percent annually over the next three years and inflation is expected to ease, according to the draft of a three-year budget report.

Central Asia's largest economy has suffered from the global liquidity squeeze coupled with runaway inflation. The government sees gross domestic product growth slowing to 5.3 percent this year from 8.7 percent last year.

It expects to increase the budget deficit to 3.0 percent of gross domestic product next year from 2.1 percent planned this year, according to the draft which was submitted to parliament on Thursday.

Resource-rich Kazakhstan relies heavily on oil and metals as sources of export revenue and to generate investment.

The budget, based on the projected average price of Brent crude oil of $60 per barrel throughout the next three years, forecasts oil output growing to 72.9 million tonnes in 2009, 81.3 million tonnes in 2010 and 81.6 million tonnes in 2011.

The government had earlier projected output between 67 and 70 million tonnes this year.

According to the draft, it expects annual inflation, seen close to 10 percent this year, of around 9.5 percent in 2009, 9.0 percent in 2010 and 8.7 percent in 2011. (Reporting by Raushan Nurshayeva; Writing by Olzhas Auyezov; Editing by Jan Dahinten)