IMF concludes review of extended fund facility program
A staff-level agreement has been reached for the first and second reviews of Mongolia’s extended fund facility program with the International Monetary Fund (IMF).
IMF concludes review of extended fund facility program. A staff-level agreement has been reached for the first and second reviews of Mongolia’s extended fund facility program with the International Monetary Fund (IMF). According to the IMF team, all quantitative targets under the program have been met by Mongolia. Fiscally, Mongolia has been in a better position than expected, backed by stronger revenue and tight expenditure control. IMF statement noted that the GDP growth is likely to reach at least 3.3 percent this year on the back of strong coal exports, a robust recovery in services, and a return of confidence following the approval of the 5.5 billion USD IMF-supported packages. Growth is expected to become more broad-based in 2018 as the domestic economy revives, but there are downside risks to the coal sector. Also, the overall fiscal deficit is likely to be 7.5 percent of GDP this year compared to 17 percent in 2016. Moreover, the recently approved 2017 budget amendment and the 2018 budget draft bill are in line with the program said the IMF team.
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