ECONOMIC GROWTH OF MONGOLIA EXPECTED TO BE 3.8 PERCENT

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ECONOMIC GROWTH OF MONGOLIA EXPECTED TO BE 3.8 PERCENT
Asian Development Bank (ADB) introduced the Outlook on Mongolia’s economy on April 11.

The Senior Country Economist of ADB Declan Magee said “We are optimistic about Mongolia’s economic growth in 2018. In 2018, the economic growth will slightly slow down compared to 3.8 percent growth in 2017, which is a good indicator. The mining investments are the main factor of the growth. However, the risk factor for the growth is coal export, especially the transportation problems. The economic growth is expected to be intensified, going up to 4.3 percent in 2019.”

Inflation rate in Mongolia is forecast to be 8 percent in 2018 and 7 percent in 2019. The budget deficit is expected to reach 6.4 percent of GDP in 2018 and 5.1 percent in 2019. The main reason for this would be increase in expenditures and predicted decrease in revenue due to tax reforms.

Country Director of the ADB for Mongolia Yolanda Fernandez Lommen introduced the Outlook on the economy of Asian countries. She noted the opportunities to expand economic growth in the Asia-Pacific region. The regional economic growth was 6.1 percent in 2017 and is expected to be 6 percent in 2018 and 5.9 in 2019.

Moreover, she emphasized that the regional inflation rate is expected to be 2.9 in 2018, reason for which is the commodity price rises and consumer demand on the international markets.