Economy posts 6.1 percent growth
The experts emphasize that the high prices for coal and copper on the global market in 2018 have a major impact on economic growth of Mongolia.
According to the National Statistical Office preliminary performance report of the first quarter of 2018, MNT 3.2 trillion, which is over USD 1.3 billion was in circulation in the economy, over USD 78 million increase compared to same period of last year. The data indicate that the Mongolian economic growth increased to 6.1 percent. The World Bank’s forecast on economic growth of Mongolia in 2018 is 3.1 percent. However, the economy is expected to accelerate and exceed international forecasts, according to domestic analysts. Prices of natural resources with significant influence on the economy including copper, gold, and coal are relatively high. Increased coal transport passages at the border crossing of Mongolia and China allowed 1000-1400 vehicles cross the border daily, intensifying coal exports in the second quarter. On the other hand, increase in foreign investment and expectations of moving megaprojects’ forward are showing a positive impact on the economy. The experts emphasize that the high prices for coal and copper on the global market in 2018 have a major impact on economic growth of Mongolia, particularly on the mining sector. Mongolia’s economy is highly dependent on mining product prices as mining accounts for 78.8 percent of exports. Economists agree that if the coal and copper prices stay high on the global market, the positive effects on the country’s economy will continue. One of the reasons of relatively positive economy is China’s large purchase of coal, analysts explain.
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