Mongolia Showing Dramatic Progress

Mongolia’s economic performance has improved dramatically with GDP growth increasing from 1.2% in 2016 to 5.1% in 2017 and 6.1% in the first quarter of 2018, Montsame reported. While short- and medium-term economic prospects remain positive, Mongolia faces core structural vulnerabilities that hinder its potential, according to Mongolia Economic Update, the latest World Bank report on Mongolia’s economy launched in capital Ulaanbaatar Saturday. The report also highlights the importance of improving efficiency of its public investment programs given extensive consequences from the overambitious and unrealistic investment programs implemented in the past. “Last year was a good year for Mongolia with favorable commodities prices and the successful implementation of the government’s economic recovery program,” said Jean-Pascal N. Nganou, World Bank senior economist for Mongolia and team leader of the report. “This resulted in improved fiscal and external balances, triggering a slight decline in the country’s public debt.” The recovery is expected to accelerate with a GDP growth rate averaging more than 6% between 2019 and 2020, driven by large foreign direct investments in mining.