ABOUT PROJECTION OF MONGOLIA'S ECONOMIC GROWTH

Ulaanbaatar, Mongolia /MONTSAME/ The projected 15-16 percent economic growth of Mongolia may worsen down to eight percent due to a delay of the economy of China. It was reported on Tuesday by O.Mashbat, the scholar-secretary of the Institute of Strategy Studies at a conference of the sub-council on finance and economics. He said China's economy is in delay, even it is expected to continue until next year. “Probably, it will be caused by the country's steel production, which means the needs in coke coal will reduce, due to this, the coal export of Mongolia will decrease,” the scholars underlined. According to statistics, the export of Mongolia, especially of coal export, has been successful, for example, we supplied to China 32 per cent of a total coke coal in 2010, and 46 per cent--in 2011. The construction sector is considered as the largest consumer of copper, only China consumes 40 per cent of copper of the world, but this sector in China is in recession either, thus it is expected it will give negatively influence on Mongolia's copper export. “China's policy on credit supporting might lead to an increase of the inflation rate in this country. We import a majority of consumer goods from China, and the World Bank has made a conclusion that China's inflation will repeat in Mongolia in three months,” a director of the Institute of International Studies L.Khaisandai said. He warned that Mongolia's export might get in difficult situation because China is making a contract with Russia to import coal and natural gas through its Far East and the western side. The market for Russia depends on Europe, so Russia is maintaining a policy to expand its market to Asia with a purpose of increasing the productions of gas, oil and coal, the scholars said. B.Khuder