Fitch revises Mongolia’s credit rating from stable to positive
Fitch Ratings agency has revised Mongolia’s credit rating from stable to positive in light of improved fiscal outlook and recovering economy backed by 5.8% GDP growth in third quarter of 2017
Fitch Ratings agency has revised Mongolia’s credit rating from stable to positive in light of an improved fiscal outlook and a recovering economy backed by 5.8% GDP growth in the third quarter of 2017. Fitch forecasts that the government’s deficit in 2017 will decrease to 7.3% of GDP. Moving forward in 2018, the ratings agency has estimated that the government will be able to decrease budget deficit to 6.5% of GDP in part due to increasing budget revenue and minimal budget expenditure increases. “Continued adherence to fiscal targets and reforms aimed at reducing off-budget expense and introducing greater independence to the budgeting process should lay a path towards a more strong and reliable fiscal framework over time, but is still in the developing stage,” said Fitch in a statement. The ratings agency forecasts that the GDP of Mongolia will grow 4.2% in 2017 and 4.5% in 2018.
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