World Economy

Mongolia Facing Revenue Shortfall

Mongolia Facing Revenue ShortfallMongolia Facing Revenue Shortfall

Having capitalized on the global commodity boom, and its proximity to a ravenous China, Mongolia has until recently seen rapid economic growth. As Chinese growth forecasts in the coming years sink towards the mid-single-digit range, Mongolia enters 2016 skirting with recession, UPI reported. As commodity exports dry up, Mongolia is faced with a revenue shortfall. On March 14, the government received a $250 million loan from Credit Suisse. Furthermore, Mongolia also recently issued $500 million in government bonds, in order to raise needed capital. Taken together, the new bonds and Credit Suisse loan represent efforts to raise funds equivalent to 6.5% of GDP.