Moody's predicts Mongolia`s GDP growth
Moody has reported that Mongolia's GDP growth will be strong over the medium term, rising towards 7 percent by 2021, backed by demand for its natural resources.
Moody has reported that Mongolia's GDP growth will be strong over the medium term, rising towards 7 percent by 2021, backed by demand for its natural resources. Consumption of coal and copper, both key exports for Mongolia, is likely to remain robust, given structural changes in the market, such as those associated with urbanization and the electrification of transport in China. However, risks to growth stem from a very high reliance on China as a destination for its exports and source of investment, as well as lack of predictability on the regulatory environment which can weigh on investment. Recently, Moody`s Investors Service has upgraded the Government of Mongolia's long-term issuer ratings and the senior unsecured ratings to B3 from Caa1. B3 is considered stable and medium-term growth potential. Moody`s has explained this upgrading as Mongolia`s abundant mineral resources, demand for which is expected to remain solid. Thus, Mongolia is no longer considered high-risk rating which pushes away the possible foreign direct investments.
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