Showing posts with label Mongolia Economy. Show all posts
Showing posts with label Mongolia Economy. Show all posts

IMF says Mongolia's debt forgiveness plan violates 2017 bailout deal

ULAANBAATAR/WASHINGTON (Reuters) - A plan by the Mongolian government to repay 776 billion tugriks ($283 million) of debt held by its elderly citizens is not in line with the pledges it made in 2017 to secure a bailout deal from the International Monetary Fund, the IMF said on Friday.   
President Khaltmaa Battulga, a populist businessman and former wrestler elected in 2017, said during his New Year address last week that the government would pay off all “pension-backed loans” this year.
He said the move is aimed at “relieving elderly people who dedicated their lives to the development and prosperity of Mongolia of their debt pressures.”
The president said the costs of the program would be covered by raising production at the Salkhit silver mine, which was seized by the state from private Chinese investors during a special military operation at the end of 2018. 

The plan was approved by Mongolia’s parliament on Thursday. The central bank has already ordered commercial banks to stop issuing new pension loans from Jan. 1.  
“The government’s proposal to cancel pension-backed loans is not consistent with the authorities’ goals under the IMF-supported program agreed in 2017,” said Geoff Gottlieb, the IMF’s mission chief in Ulaanbaatar, in a statement emailed to Reuters.
“It increases already high public debt by 2% of GDP to help one narrow part of the population, regardless of their financial need,” he said, adding that the off-budget spending by the central bank causes inflation, puts pressure on the exchange rate and also “raises concerns about governance and proper parliamentary oversight”. 
Battulga’s office did not immediately respond to requests for comment on Friday. 
Mongolia secured a $5.5 billion economic stabilization package from the IMF and other partners in 2017 in a bid to head off an economic crisis brought about by plummeting foreign investment, declining commodity export revenues and a collapse in its currency, the tugrik.  
As part of the deal, the government agreed to cut spending and raise taxes in a bid to balance its books. It also pledged to implement fiscal reforms in order to maintain budget discipline, and to improve the way it regulates the banking and finance sector. 

Reporting by Anand Tumurtogoo in Ulaanbaatar and Andrea Shalal in Washington; Writing by David Stanway in Shanghai; Editing by Kim Coghill

Source:Reuters news agency
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Mongolia raises monthly minimum wage

ULAN BATOR, Jan. 2 (Xinhua) -- Mongolia has raised its monthly minimum wage by 100,000 Mongolian tugriks (about 36.6 U.S. dollars), the country's Ministry of Labor and Social Protection said Thursday.
In April 2019, Mongolia's Tripartite Council, which brings together representatives of the Ministry of Labor and Social Protection, employers and trade unions, agreed to raise the minimum wage to 420,000 tugriks (about 154 dollars) from the first day of 2020, the ministry said in a statement.
Currently, roughly 1.1 million people are employed in the country, of whom about 8 percent receive minimum-wage salaries, according to the ministry.
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Mongolia's forex reserves hit all-time high in 2019

ULAN BATOR, Jan. 2 (Xinhua) -- Mongolia's foreign exchange (forex) reserves hit an all-time high in 2019, the country's central bank said Thursday.
"In 2019, the Bank of Mongolia has successfully implemented measures to ensure economic stability. As a result, our country's forex reserves exceeded 4.2 billion U.S. dollars at the end of the year, hitting an all-time high," said Byadran Lkhagvasuren, governor of the central bank, in his New Year speech.
The mineral-rich Asian country's forex reserves at the end of 2019 grew almost 20 percent from 3.5 billion dollars at the end of 2018, according to the central bank.
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Mongolia's exports up 12.6 pct in 9 months

ULAN BATOR, Oct. 14 (Xinhua) -- Mongolia's exports reached 5.9 billion U.S. dollars in the first nine months of the year, up 12.6 percent year on year, said the country's National Statistical Office (NSO) Monday.
Mongolia demonstrated a foreign trade surplus as exports exceeded imports by 1.3 billion dollars, the NSO said.
Minerals and textiles accounted for 95.8 percent of the total exports.
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Near-to-medium-term outlook for Mongolian economy remains positive: World Bank

ULAN BATOR, Oct. 10 (Xinhua) -- The World Bank (WB) said on Thursday that the near-to-medium-term outlook for the Mongolian economy remains positive.
"Growth momentum has continued in the first half of 2019, as its gross domestic product rose to 7.3 percent from 6.8 percent in 2018," Jean-Pascal N. Nganou, World Bank senior economist for Mongolia, told a press conference here upon the release of the October 2019 edition of the WB East Asia and Pacific Economic Update.
The robust performance has largely been supported by a strong coal sector and increased private investment, he said, adding that in the near to medium term, the country's growth outlook remains positive.
However, there are some risks to Mongolian economic growth, including political uncertainty, commodity price shocks, cross-border bottlenecks, implementation delay in mega projects and slower implementation of banking sector reforms, he said.
The WB has projected Mongolia's economy to grow by 6.9 percent in 2019, down 0.3 percentage point from its previous estimation in April.
In addition, the Asian country's economic growth is projected to soften to 6.3 percent in 2020 and 5.9 percent in 2021 due to the above-mentioned risks, according to the bank.
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Mongolia's industrial output up 15.5 pct in first 8 month of 2019

ULAN BATOR, Sept. 13 (Xinhua) -- Mongolia's industrial output rose 15.5 percent year-on-year in the first eight months of this year, official data showed Friday.
The industrial output amounted to 11.4 trillion Mongolian tugriks (4.2 billion U.S. dollars) in the period from January to August, according to data released by the National Statistical Office.
The growth was driven by a significant increase in the output of main mining and extractive products.
The volume of coal production rose by 49.2 percent, while the iron ore production increased by 1.5 percent from a year ago.
Presently, mining products account for more than 80 percent of the mineral-rich country's total industrial production.
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Mongolia's GDP grows 7.3 percent in H1

ULAN BATOR, Aug. 15 (Xinhua) -- Mongolia's gross domestic product (GDP) grew by 7.3 percent year-on-year in the first half of this year, said the country's National Statistical Office (NSO) on Thursday.
The Asian country's GDP totaled 8.6 trillion Mongolian tugriks (3.2 billion U.S. dollars) in the January-June period and the growth was mainly attributed to good performance in the industry, services and mining sectors, which recorded 9.3, 7.4 and 13 percent growth respectively, according to the NSO.
The mineral-rich country's economy expanded 8.6 percent year-on-year in the first quarter of this year, which was the strongest GDP growth rate since the third quarter of 2014 when the figure stood at 9.1 percent.
The World Bank has predicted that Mongolia's economy would grow by 7.2 percent in 2019 and 6.9 percent in 2020.
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The Largest Cashmere Manufacturer Of Mongolia Comes To The USA

ULAANBAATAR, Mongolia - During the Mongolian president's U.S. visit this week, that country's largest cashmere manufacturer, the Gobi Corporation, is preparing to announce its plans to enter the U.S market by September.
The subsidiary Gobi Cashmere USA will be located in Los Angeles, and is launching an e-commerce website specially dedicated to U.S customers.
The Gobi Corporation currently supplies high-quality raw cashmere products to the international market. However, its presence in the U.S. has been small due to fierce competition from China. As of now, Gobi Corporation has franchise stores in Chicago, Los Angeles and San Francisco. If a trade bill under consideration is passed, cashmere companies from the young democratic nation would be able to better compete with its competitors.
Increased trade between the U.S. and Mongolia would benefit many stakeholders in the cashmere supply chain, including nomads, employees and, ultimately, consumers.
The nomads of Mongolia rely on the sale of their raw cashmere to manufacturers for half of their annual income, which is badly needed for educating their children as well as other annual costs.
Nomads herd goats whose raw cashmere is supplied to the market. The traditional Mongolian nomadic way of coexisting with livestock offers a special feature of differentiation to cashmere sourced from Mongolian land, in terms of traditional heritage, and special care and humane treatment for the goats.
Additionally, Gobi has more than 2,800 employees - 80% of them female. As a part of the company's social responsibility, Gobi thrives to be the number one organization that leads others by example by taking good care for the employees' well-being, especially for those in need. This is another driver of the company's expansion to the international market, as the production increase will directly affect the employees' standard of living.
Mongolia, a landlocked country sandwiched between Russia and China, is utilizing its third-neighbor policy to its highest potential by expanding its diplomatic relations with countries around the world.
Diplomatic relations between Mongolia and the U.S. were formally established on Jan. 27, 1987, and it has expanded both on economic and political platforms. On July 26, 2018, U.S. Rep. Ted Yoho and nine other members Congress introduced a trade bill seeking to promote trade between the U.S. and Mongolia by allowing duty-free treatment for certain imports from Mongolia, such as cashmere products and textile materials.
Mongolian President Battulga Khaltmaa visited the U.S. on Wednesday to express his full support for the trade bill and appreciation to the sponsors.
The trade act would be helpful the Mongolian economy in a variety of ways beyond opening the U.S. market to its cashmere. Mongolia supplies about 48% of the total raw cashmere to the world market, making it the second-largest raw cashmere supplier, yet they use only 15% of it to make ready-to-wear finished cashmere garments locally. The remaining 85% of the raw cashmere is sold as a semi-processed material to other markets with less added value, which is becoming the focus area of the Mongolian government and domestic cashmere manufacturers. The U.S. is considered as the second largest cashmere consumer country. This duty-free treatment would open a tremendous opportunity for Mongolia to diversify its economy.
The world has heard about the rich history of Mongolian invasionshundreds of years ago, but now, they are ready to invade the world cashmere market with their silky-soft pure products. And now they are coming to your doorsteps, America.
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Mongolia's inflation rate rises above central bank's target to 8.1 pct

ULAN BATOR, July 22 (Xinhua) -- Mongolia's inflation rate increased to 8.1 percent in June from 7.9 percent in the previous month, the country's central bank's spokesperson Ariun Dagva said Monday.
Earlier, experts said the central bank will not allow inflation to rise above 8 percent.
It was the highest inflation since December 2018, Dagva told Xinhua, adding that inflation in Mongolia, as in many other countries, is calculated on the basis of the consumer price index for goods and services.
The inflation was directly affected by the rise in prices of meat and meat products, which amounted to 31.6 percent. During this period, prices and tariffs for housing services, water, electricity, gas and other types of fuel increased by 8.8 percent.
Prices for medicines and medical services increased by 8.6 percent, Dagva added.
The main reasons for the accelerated growth of inflation were the weakening of the Mongolian tugrik against the Chinese yuan and the U.S. dollar, and the peak payments of Mongolia's foreign debt, according to economists.
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Mongolia sees sharp recovery in economy: IMF official

ULAN BATOR, June 30 (Xinhua) -- Mongolia's economy witnessed a sharp recovery in growth thanks to a combination of buoyant external conditions and the government's spending restraints, the International Monetary Fund (IMF) was quoted by the country's central bank as saying on Sunday.
The Mongolian economy is now much stronger and there has been a significant improvement in the economy, said Geoff Gottlieb, who led an IMF team to the Mongolian capital Ulan Bator on June 19-28.
"Mongolia's growth rate recovered sharply since 2016. The turnaround in real GDP growth was boosted by strong external demand for Mongolia's mineral exports, the resumption of the second phase of the Oyu Tolgoi copper mine and loosening monetary and credit conditions. In addition, the government's improving policy mix strengthened domestic confidence," Gottlieb said, noting that these factors have mainly contributed to the sharp economic recovery.
The Asian country's GDP expanded 8.6 percent year-on-year in the first quarter of 2019, amounting 3.5 trillion Mongolian tugriks (1.3 billion U.S. dollars).
The IMF predicted Mongolia's GDP will grow by at least 6.3 percent in 2019.
"Due to booming tax revenues and relatively contained expenditures, the fiscal balance has improved by 18 percentage points and public debt has fallen 13 percentage points to 75 percent of GDP. Externally, the Bank of Mongolia has used the strong turnaround in exports and FDI to increase net foreign exchange reserves by 3 billion U.S. dollars since end-2016," Gottlieb added.
However, the country's buffers are still insufficient to cope with the downside risks, the IMF team leader warned, urging the Mongolian authorities to continue advancing structural reforms necessary to extend the recent progress.
Back in 2016, the economy was in a desperate situation: GDP growth fell to below zero, foreign exchange reserves also decreased which were negative in net terms and below 1 billion U.S. dollars in gross terms, and public debt rose to almost 100 percent of GDP.
The IMF executive board approved a three-year bailout program for Mongolia in May 2017 to help the government's economic recovery plan that focuses on building foreign exchange reserves, driving debt onto a sustainable path, strengthening the banking sector, and securing stable and inclusive growth over the long run.
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Mongolia's exports rise significantly in first two months of 2019

ULAN BATOR, March 13 (Xinhua) -- Mongolia's exports reached 1.1 billion U.S. dollars in the first two months of this year, up 30.4 percent from the same period last year, official data showed Wednesday.
Mineral and textile accounted for over 95 percent of the total exports, according to data from the National Statistical Office of Mongolia.
Mongolia, a landlocked country that heavily relies on mining, is trying to diversify its exports to its trading partners.
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Moody's announces completion of a periodic review of issuers including Government of Mongolia

Singapore, March 12, 2019 -- This publication is for information only, and does not announce a rating action.
Moody's Investors Service ("Moody's") reviews all of its ratings periodically in accordance with regulations -- either annually or, in the case of governments and certain EU-based supranational organisations, semi-annually. This periodic review is unrelated to the requirement to specify calendar dates on which EU and certain other sovereign and sub-sovereign rating actions may take place.
Moody's conducts these periodic reviews through portfolio reviews in which Moody's reassesses the appropriateness of each outstanding rating in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1st January 2019, Moody's issues a press release following each periodic review announcing its completion.
Moody's has now completed the periodic review of a group of issuers that includes Mongolia and may include related ratings. The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future; credit ratings and/or outlook status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
The credit profile of Mongolia (issuer rating B3) incorporates its "Low(+)" economic strength, supported by strong growth potential balanced by a small and narrowly diversified economy; its "Low(-)" institutional strength, which take into consideration reform progress against an ongoing program with the IMF, as well as the credibility and effectiveness of its monetary and fiscal policies; "Very Low(-)" fiscal strength, reflecting a high debt burden, weak debt affordability, and a reliance on foreign currency denominated debt; and a "High (-)" susceptibility to event risk, driven by external vulnerabilities.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Sovereign Bond Ratings published in November 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Anushka Shah
Vice President - Senior Analyst
Sovereign Risk Group
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
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Marie Diron
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
Releasing Office:
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
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Mongolia posts 6.9 pct economic growth in 2018

ULAANBAATAR, Feb 15 (Reuters) - Mongolia saw its economy grow 6.9 percent in 2018, beating expectations and accelerating from 5.3 percent growth in the previous year, the country’s statistics office said on Friday.
An increase in foreign trade, particularly mining products like coal and copper, most of which are sold to neighboring China, helped drive the growth.
The 2017 growth rate was revised up from a previous estimate of 5.1 percent.
The country was forced to turn to the International Monetary Fund for assistance in 2017 after a collapse in foreign investment and commodity prices left the government heavily in debt and put its currency, the tugrik, into freefall. 
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Interview: Mongolia's long-term economic outlook is promising -- ADB country director

LAN BATOR, Dec. 11 (Xinhua) -- Mongolia's long-term economic outlook is promising, Yolanda Fernandez Lommen, the Asian Development Bank (ADB) country director for Mongolia said.
"The Mongolian economic growth is forecast to reach 6.4 percent this year and 6.1 percent next year," Lommen told Xinhua in a recent interview.
This growth is largely driven by massive foreign direct investment in the country's Oyu Tolgoi copper-gold mine, estimated at 1.1 billion U.S. dollars in each year respectively, she explained.
"This is remarkable because the country was a in a deep economic crisis just a couple of years ago," the country director said.
The Oyu Tolgoi mine, located in a gobi desert 80 km north of Mongolia's border with China, is expected to produce 430,000 tons of copper and 425,000 ounces (about 12,050 kg) of gold annually for 20 years.
The contribution of mining to growth is projected to turn positive in 2018 and be higher in 2019, Lommen said, adding that the construction sector is to recover along with increasing mining activities, she said.
Domestic consumption will be supported by an increase in government expenditures, household incomes and consumer confidence gained from economic recovery, Lommen said.
The ADB projects an average inflation at 7.2 percent in 2018 and 7.0 percent in 2019, close to the government's target of 8.0 percent.
Lommen said that rising domestic demand, oil and global food prices as well as effects from a looser monetary policy last year has driven higher inflation in 2018.
Fiscal policy will remain expansionary in 2019, with rigorous tax reforms supporting small- and medium-sized enterprises.
Upbeat about Mongolian's long-term economic prospects, the ADB country director said:"large ongoing mining projects are expected to turn the balance of the fiscal budget and the balance of payments into surpluses in the years ahead."
Meanwhile, she stressed that for a mining-dependent economy like Mongolia, "more is needed" apart from well taping its mineral wealth.
In addition to economic diversification and higher productivity, more efforts should be made to ensure macroeconomic stability as well as sustainable and inclusive growth of its economy.
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Made in Mongolia: From an artist’s studio to a world-renowned Mongolian brand

We, Mongols, have many things that we must be prideful for. Most importantly, we must discover, preserve, pass onto generations, develop and raise public awareness of these items and fame them as “our and Mongolia’s brands”. Products of Hangain Sor, which laid the cornerstones for such achievement, already gained reputations exceeding their local area and even the country becoming commodities consumed internationally; it is worth being proud for. Hangain Sor is run a family couple N.Bolormaa, university trained theatre artist, and Ts.Bundhorol, head of the family and specialist in Mongolian traditional painting. They established a family-based Hangain Sor LLC that produces unique and peculiar Hangain Sor brand products for domestic and international market.



The couple laid the foundation for their business of yak and sheep wool products as early as 1980ies. At her age of 16, Bolormaa made a bag with yak hair and renowned yak researcher Doyoddorj praised her first product saying “rare item that can be said unique in world”. After that she got a patent #252 from the authority of Mongolian People’s Republic for her products made of yak wool and hair products. Later on, they established “Monso” sole proprietorship in 1994 as a start of their family business engaged in production of different items with yak wool, hair and sheep wool.
Though they were equipped with gifted talent and workmanship, they needed to learn felt crafting, develop their skills to higher professional level. This urged Bolormaa to be involved in training on “Primary level wool processing and felt crafting”. Bolormaa often links her success and achievement to her first trainer Byambaa, consultant of “Wool scientific research and experimental institute”. At that time, the business operators were running small scale, household based production of bags and other petty items with yak wool and hair and their traditional fine-arts work.
Now, they already gained their position and share on the market. They established Hangain Sor LLC in 2007 that produces more than 70 products of 30 types including yak and sheep wool bag, hat, socks, waistcoats and cushion. Their Hangain Sor brand products with Mongolia’s registered trademark are exported to Germany, Japan, US, Belgium and Denmark with further plans to establish an online trading platform for new products in cooperation with a Turkish company that they agreed to work with.
They said their achievement in business, success of marketing its produce on international markets and outcomes of raising public awareness on their brand product was because of the company was selected for OVOP initiative and cooperated with UNDP-funded Enterprise Mongolia project. By getting involved with the project, they were trained in series of business skills including expanding business, marketing and management skills. Moreover, Hangain Sor participated in number of domestic and international trade fairs with support from project resulting in making Hangain Sor products familiar to consumers.
Businesses expressed their gratitude to the project for assisting them on product brochure development, packaging, labeling and introducing bar codes. N.Bolormaa, CEO of Hangain Sor LLC, said, “The key outcome of project intervention is that it supported the work of two businesses that was carried out just by their spirit and interests to the level of a production business, finding markets for supplying our produce and increasing the jobs”.
Currently, the company employs 8 full-time staff and 15 part-time contractors. They provide apprenticeship opportunities for their staff before employment as yak wool crafting requires sense and workmanship. Hangain Sor’s products differ from other felt products with its unique design without sewing, but with wool patterns are made on the product by penetrating it from early stage allowing natural color. 
Obviously, company had to overcome considerable challenges to reach today’s height. Accessing to bank loan was the biggest challenge. Company director N.Bolormaa says that weak link between SMEs support policy and financial policy and lack of flexible and sensible acts obstacles their commitment to expand their operations more.
They have achieved a great deal. Their previous creative arts that gained fame continued with Hangain Sor product brands. For instance, they were awarded several times for their outstanding performance in creating the national brand product i.e. selected as an “Outstanding producer of Uvurhangai aimag” in 2002, awarded with “Outstanding brand product of Hangai region” from Hangai region partnership-2006 trade fair and “Best local yak wool product” from OVOP-2011 national forum, and this list would go further many pages.
They have been overcoming the challenges and working hard to create great deals. “When thinking of physically easy work, we would just sit and paint our pictures, however our heart-full commitment and ambitions to add up Mongolian brand products always prevails”, once said N.Bolormaa, CEO of Hangain Sor. Their willingness of domestic production of environmentally friendly, ecologically pure and healthy products that would take place on the global market as a Mongolia’s brand product will definitely come true.


Source:UNDP
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Mongolia's economy to grow 5.9 pct in 2018: WB

ULAN BATOR, Oct. 4 (Xinhua) -- Mongolia's economy will grow 5.9 percent in 2018, supported by a revived coal sector and strong private investment mainly in the mineral and trade sectors, the World Bank (WB) said Thursday in its latest report.
Mongolia's economy in 2019 is predicted to expand by 6.6 percent, according to "Navigating Uncertainty," the October 2018 edition of the WB East Asia and Pacific Economic Update.
Private investment supported by foreign direct investment and private sector credit will remain a key driver for growth in the medium term, especially in the mining, manufacturing and transport services, Jean-Pascal N. Nganou, WB Senior Economist for Mongolia, said at a press conference.
"The Mongolian economy has shown good performance in the first quarter of 2018. Particularly, growth of the gross domestic product (GDP) increased from 5.1 percent in 2017 to 6.1 percent in the first quarter of this year," Nganou said, adding that Mongolia's economic growth is expected to continue.
Meanwhile, there are some domestic and external risks to Mongolia's economic growth, including the 2020 election which could delay the implementation of mega projects in the mining sector, trade tensions between major economies, and commodity market volatility, the bank warned.
The country's economy is heavily dependent on the mining industry, which contributes to about a quarter of the country's GDP and more than 90 percent of its exports.
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Mongolia exports over 28,000 tons of meat in first 8 months

ULAN BATOR, Sept. 28 (Xinhua) -- Mongolia exported a total of 28,123 tons of meat and meat products in the first eight months of 2018, of which 12,315 tons were heat-treated products, customs data showed Thursday.
The figure is up 2.4 times from the same period last year, according to the Mongolian Customs General Administration.
Almost 50 percent of the total exported meat in the January-August of 2018 was horse meat.
Mongolia currently exports meat and meat products to China, Russia, Kazakhstan, Japan, Iran and Qatar. At present, the country is negotiating with Kuwait and Uzbekistan for export to those markets, according to the Mongolian Ministry of Food, Agriculture and Light Industry.
The Asian country, one of the last nomadic countries in the world, has more than 66.2 million livestock animals, and its animal husbandry is one of the leading sectors of the landlocked country's economy.
The country aims to raise meat exports tenfold in the coming years.
There are more than 30 meat processing enterprises in the country with special licenses to export meat and meat products.
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ADB raises Mongolia's 2018 economic growth forecast to 6.4 pct

ULAN BATOR, Sept. 26 (Xinhua) -- The Asian Development Bank (ADB) on Wednesday upgraded Mongolia's economic growth to 6.4 percent this year from the previous forecast of 3.8 percent.
It also upgraded Mongolia's growth in 2019 to 6.1 percent from 4.3 percent, according to an update of ADB's flagship annual economic report, Asian Development Outlook 2018.
Mining investment will continue but a slowdown in the growth of mining investment, however, is expected to temper growth of Mongolia's gross domestic product (GDP) in 2019, it said.
"Mongolia's economy has performed better than expected in 2018. This upward revision is based on better performance of coal exports and stronger-than-expected private consumption," Yolanda Fernandez Lommen, ADB country director for Mongolia, said at a press conference.
"Mongolia's economy posted strong growth in the first half of this year at 6.3 percent, continuing the strong economic performance of 2017. Private consumption has been higher than anticipated due to a surge in credit to households," she said.
"Also, external demand for Mongolian coal has boosted economic performance and increased revenues, while investment into the mining sector continues to play a key role," she added.
According to the ADB, investment remained the main source of Mongolia's economic growth in the first half of 2018, contributing 12.6 percentage points to its GDP.
ADB, based in the Philippine capital Manila, is dedicated to reducing poverty in Asia through inclusive and environmentally sustainable economic growth, and regional integration.
Established in 1966, ADB has 67 members, including 48 from within the Asia-Pacific region. In 2017, the bank's operations totaled 32.2 billion U.S. dollars.

Source:Xinhua news agency
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Mongolia's Economic Recovery Continues on Strong Growth

The FINANCIAL -- ULAANBAATAR, MONGOLIA (26 September 2018) — The Mongolian economy posted strong growth in the first half of 2018 at 6.3%, continuing the strong economic performance of 2017, on the back of a robust expansion in investment in the mining sector as well as a surge in consumption propelled by a rise in credit to households.
In an update of its flagship annual economic publication, Asian Development Outlook (ADO) 2018, ADB is revising its growth outlook for Mongolia to reach 6.4% in 2018 and 6.1% in 2019, exceeding its April estimates of 3.8% growth this year and 4.3% next year. This upward revision is based on better performance of coal exports and stronger than expected private consumption. Mining investment will continue but a slowdown in the growth of mining investment, however, is expected to temper 2019 gross domestic product (GDP) growth.
Investment remained the main source of growth, contributing 12.6 percentage points to the country’s GDP. Consumption contributed 3.9 percentage points due to the surge in credit to households. Net exports subtracted 10.3 percentage points as imports rose to supply busier mines, outpacing export growth. On the supply side, industry, supported by recovery in mining and expansion in manufacturing, lifted GDP growth by 2.1 percentage points, and services added another 3.7 percentage points. Agriculture’s contribution to growth, however, fell to 0.5 percentage points as drought brought livestock losses.
The budget recorded a surplus equal to 2.8% of GDP in the first half of the year as revenue substantially outgrew expenditure. The current account deficit widened to 10.7% of GDP in the first half of 2018 as a 32.7% rise in imports dwarfed 15.7% growth in exports. The Mongolian togrog depreciated by 1.5% against the US dollar in the first 8 months of 2018 but rose against the currencies of trading partners in both trade-weighted and inflation-adjusted terms.
Inflation accelerated to average 6.5% in the first half of 2018, mainly because food prices rose with drought and higher exports of meat, but also reflecting higher prices for petroleum products. The inflation forecast for 2018 is revised down as pass-through from currency depreciation in 2016 fades, and with the government expected to follow its annulment of excise taxes on fuel with further interventions to stabilize fuel prices. A higher current account deficit is now projected for 2018 as unexpectedly strong economic growth pushes up imports and as mining profits are repatriated, though most profits are reinvested.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.

Source:Asian Development bank
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Mongolia's foreign trade turnover up 23.6 pct so far this year

ULAN BATOR, Sept. 10 (Xinhua) -- Mongolia's foreign trade turnover reached 8.47 billion U.S. dollars in the first eight months of 2018, up 23.6 percent year on year, customs data showed Monday.
Exports rose 13.9 percent year on year in the January-August period to 4.67 billion dollars, while imports grew 38.0 percent to 3.8 billion dollars, resulting in a trade surplus of 870 million dollars, according to the Mongolian Customs General Administration (MCGA).
The market value of 11 locally manufactured products has increased, contributing to the increase in revenue from exports, the data said.
In the first eight months, the landlocked Asian country has traded with a total of 150 countries. Among the 147 countries to which Mongolia exported its goods and services in the period, China was the recipient of over 85 percent of the total, the data showed.
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