According to the report published by Asian Development Bank /ADB/ on Mongolian economy, economic growth is expected to slow to 3 percent this year.
However, growth will reach 5 percent in 2016 due to the recovery in the mining sector, due to the stable expernal environment .
As noted in the ADB report, the Government should tighten monetary and fiscal policy to address on the balance of payments. There is a need to strengthen debt management and to prepare for the repayment of significant liabilities in 2017-2018.
Diversification of the economy also remains a priority to ensure more consistent growth and to generate jobs.
Providing social protection for the people living under the poverty line is one of the main issues that should be prioritized.
Inflation as measured by the Consumer Prices Index which was at 14.9 percent in July 2014 dropped to 9.3 percent in February 2015 as monetary policy was tightened and is expected to meet the Central bank’s opolicy target of 0.7 percent by the end of 2016.