Fitch Ratings agency has revised Mongolia’s credit rating from B- stable to B- positive in light of an improved fiscal outlook and a recovering economy backed by 5.8% GDP growth in the third quarter of 2017, Yahoo reported. Fitch forecasts that the government’s deficit in 2017 will decrease to 7.3% of GDP. Moving forward in 2018, the ratings agency has estimated that the government will be able to decrease budget deficit to 6.5% of GDP in part due to increasing budget revenue and minimal budget expenditure increases. “Continued adherence to fiscal targets and reforms aimed at curtailing off-budget expenditure and introducing greater independence to the budgeting process should lay a path towards a more robust and credible fiscal framework over time, but is still in a nascent development stage,” said Fitch in a statement. The ratings agency forecasts that the GDP of Mongolia will grow 4.2% in 2017 and 4.5% in 2018. Structural factors such as GDP per capita, governance indicators and doing business rankings score above “B” category peers and provide continued support to the rating.
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