Mongolia`s economic growth shows upward trend
According to economists from Bloomberg, Mongolia's economic growth is expected to reach 5.1 percent in 2018.
According to economists from Bloomberg, Mongolia's economic growth is expected to reach 5.1 percent in 2018. Asian Development Bank notes that Mongolia`s economy in the first half of 2017 sought the growth of 5.3 percent from only 1.2 percent growth in 2016. The economists also stated that Mongolia can take full advantage of the International Monetary Fund’s extended fund facility program, and has the potential to restore its mega-projects like Tavan-Tolgoi and Oyu-Tolgoi. IMF approved a three-year extended arrangement under Extended Fund Facility (EFF) for Mongolia in a total amount of 5.5 billion USD in May of 2017.The financing partners of IMF were the Asian Development Bank, the World Bank, Japan, and Korea. As part of Japan`s promised support for restoring Mongolia`s economy was made available recently as Financing of 32 billion JPY for the Development Loan on Social, Economic and Budget Reform has been received. The 32 billion JPY is being provided as a 20-year loan. The IMF extended fund facility program aims to support Mongolia`s economic reform program. However, the economists from Bloomberg believe that the postponed mega projects, political instability, and inflation are the main risks Mongolia is facing.
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