Global Trends Hit Mongolian Economy

The country’s lifeline is its mining industry, but Chinese and other foreign interest is waning.
2 October 2015
Mongolia’s government, desperate to refill shrinking state coffers, is considering selling off state assets, tax increases and other measures, Bloomberg Business reports.

Bolor Bayarbaatar
The budget deficit may reach 1 trillion tugrik ($500 million) this year, almost double the level of 600 billion tugrik in the first eight months of 2015, Finance Minister Bolor Bayarbaatar said.

Mongolia’s economy relies heavily on mineral extraction, so the recent drop in commodity prices, added to the economic slowdown in China and falling interest by foreign investors in dealing with see-sawing government policy has hit it hard.


  • Mongolian bonds are also in the dumps. The yield on a 10-year government bond rose to above 9 percent in September, “making it the worst performer in Asia amid a broad selloff of emerging-market debt,” The Wall Street Journal says.

  • The Asian Development Bank (ADB) will loan Mongolia $150 million to support its social welfare programs and other short-term revenue shortfalls.

  • A deal to develop the huge Tavan Tolgoi coal mine is dormant, with China’s slower growth at least partly to blame, Reuters reports.

  • After several years of economic boom, including a 17.5 percent economic growth rate in 2011, Mongolia's economy went into a nosedive as commodity prices faltered. Foreign direct investment plummeted by more than 70 percent from 2013 to 2014.

  • Another factor keeping investors away are the pitfalls of Mongolia's mining industry including official delays and environmental concerns. The authorities attempted to break the stalemate through a national text-message referendum.
Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic