Ulaanbaatar
Mongolia needs to raise its long-term potential, says World Bank
Economy
Ulaanbaatar /MONTSAME/ Mongolia needs to develop measures aimed at raising its long-term potential and manage substantial domestic and external exogenous risks, says the latest World Bank economic report on the East Asia and Pacific region released on April 12.
“In Mongolia, the economy grew by 5.1 percent in 2017 exceeding expectations, following robust coal exports, strong foreign direct investment, and continued macroeconomic stabilization. The fiscal stance improved substantially in 2017 with overall deficit dropping to 1.9 percent of GDP from 17 percent in 2016. Growth is projected to improve further to 5.3 percent in 2018 and to over 6 percent in 2019-20. Private investment will remain a key driver for growth in the medium-term, especially in mining, trade and transport services,” it says.
“Moving forward, to maintain a robust economic growth less vulnerable to commodities market shocks, Mongolia needs to develop measures aimed at raising Mongolia’s long-term potential,” said Jean-Pascal Nganou, Senior Economist for Mongolia. “In addition, managing substantial domestic and external exogenous risks would be critical. Risks include potential delay of implementation of mega projects in the mining sector, the persistence of bottlenecks at the border with China, and slow implementation of measures to address money laundering issues.”
Enhancing Potential, the April 2018 edition of the World Bank East Asia and Pacific Economic Update, underscores that even with favorable prospects, policy makers in the region will be well advised to recognize and address emerging challenges.
“In Mongolia, the economy grew by 5.1 percent in 2017 exceeding expectations, following robust coal exports, strong foreign direct investment, and continued macroeconomic stabilization. The fiscal stance improved substantially in 2017 with overall deficit dropping to 1.9 percent of GDP from 17 percent in 2016. Growth is projected to improve further to 5.3 percent in 2018 and to over 6 percent in 2019-20. Private investment will remain a key driver for growth in the medium-term, especially in mining, trade and transport services,” it says.
“Moving forward, to maintain a robust economic growth less vulnerable to commodities market shocks, Mongolia needs to develop measures aimed at raising Mongolia’s long-term potential,” said Jean-Pascal Nganou, Senior Economist for Mongolia. “In addition, managing substantial domestic and external exogenous risks would be critical. Risks include potential delay of implementation of mega projects in the mining sector, the persistence of bottlenecks at the border with China, and slow implementation of measures to address money laundering issues.”
Enhancing Potential, the April 2018 edition of the World Bank East Asia and Pacific Economic Update, underscores that even with favorable prospects, policy makers in the region will be well advised to recognize and address emerging challenges.
source: World Bank
