The World Bank increased their estimate of Mongolia’s economic growth to 5.9 percent. The increase is due to mining commodity exports and foreign direct investments. Also the increase in business confidence made a big impact. Private sector consumption, business investment and household income are set to increase. However, political and other outside factor risks are still there. Although East Asia and Pacific factors are unpleasant economic state is still positive. The area’s developing countries’ economic growth is estimated to be 6.3 percent a bit lower than the previous year. This is due to changes in China’s economic balance and policies. Last week the Asian Development bank introduced its Development outlook and Mongolia’s economy is set grow by 6.4 percent and 6.1 percent in 2018, 2019 respectively. Due to droughts in early summer agricultural production decreased and agricultural economic impact percentage point reduced to 0.5 points. Other factors such as increased coal exports stimulated the mining sector and investments increased. On the other hand, the Director of International Monetary Fund, Christine Lagarde noted that “Mongolia is still sensitive to global and local shocks and thus must make a better investment environment and reduce budget deficits.” 

Source: BloombergTv.mn