Mongolia’s economic growth to remain solid
Mongolia’s economic growth is expected to remain solid in the next two years, albeit with a slight moderation from 2018, thanks to strong domestic demand, stable services and manufacturing, as well as
Mongolia’s economic growth is expected to remain solid in the next two years, albeit with a slight moderation from 2018, thanks to strong domestic demand, stable services and manufacturing, as well as a recovery in agriculture performance, says a new report by the Asian Development Bank (ADB) released. In its Asian Development Outlook (ADO) 2019, ADB projects Mongolia’s economic growth at 6.7% in 2019 and 6.3% in 2020, from the 6.9% growth rate recorded in 2018. Apart from consumption, services will also be key to growth, with transport expected to gain from higher mining exports. Manufacturing will also benefit from the increase in mining and expanded processing of meat for export. Construction activity will rebound, boosted by a large public investment program. Agriculture will continue to recover in 2019. Average inflation will reach 8.5% in 2019 compared to 6.8% in 2018 due to rising domestic demand supported by higher government expenditure, as well as the effects of the togrog depreciation and higher fuel prices in the second half of 2018. These effects will be less pronounced in 2020, allowing inflation to stabilize at 7.5%. In 2019, we expect to see an increase in government capital expenditure. Revenue growth, which was high in 2017 and 2018, is expected to moderate but could benefit from any of the upside risks to the growth outlook. Growth remains strong across most of developing Asia but is set to moderate this year and next year against the backdrop of slowing global demand and persistent trade tensions, according to the new report.
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