Mongolia Economic Update, December 2014

In 2014, economic growth slowed as it began to adjust to unsustainable economic imbalances. Real GDP growth softened to 7 percent in the first 9 months, from 12.8 percent in the previous year. Despite strong mining production growth of 26 percent,...

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Main Authors: Lee, Taehyun, Shiilegmaa, Altantsetseg, Batsuuri, Davaadalai
Format: Report
Language:English
en_US
Published: World Bank Group, Washington, DC 2015
Subjects:
APR
NPL
TAX
Online Access:http://documents.worldbank.org/curated/en/2014/12/24195219/mongolia-economic-update-december-2014
http://hdl.handle.net/10986/21802
id okr-10986-21802
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO INFORMATION
ACCOUNTING
APR
ASSET QUALITY
ASSET RATIO
BACKED SECURITIES
BALANCE OF PAYMENT
BALANCE OF PAYMENTS
BALANCE SHEET
BANK ACCOUNTS
BANK ASSET
BANK ASSET QUALITY
BANK ASSETS
BANK CREDIT
BANK DEPOSIT
BANK FINANCING
BANK LIABILITIES
BANK LIABILITY
BANK LOAN
BANK LOANS
BANK MARKET
BANK POLICY
BANK RATE
BANKING SECTOR
BANKING SYSTEM
BASIS POINTS
BOND
BOND ISSUANCE
BROAD MONEY
BUDGET BALANCE
BUDGET DEFICIT
BUDGET DEFICITS
BUSINESS ­ ACCOUNTING
CAPITAL ADEQUACY
CAPITAL FORMATION
CAPITAL INFLOW
CENTRAL BANK
CENTRAL BANK BILL
CENTRAL BANK BILLS
CENTRAL BANK CREDIT
COMMERCIAL BANK
COMMERCIAL BANKS
COMMERCIAL DEBT
COMMERCIAL FINANCING
COMMERCIAL MORTGAGE
COMMERCIAL TERM
COMMERCIAL TERMS
COMMODITY MARKETS
COMMODITY PRICE
CONCESSIONS
CONSUMPTION GOODS
CONSUMPTION GROWTH
CREDIBILITY
CREDIT BOOM
CREDIT EXPANSIONS
CREDIT GROWTH
CREDIT QUALITY
CREDIT RISKS
CREDITORS
CREDITS
CURRENCY
CURRENCY DEPRECIATION
CURRENCY MISMATCH
CURRENCY SWAP
CURRENT ACCOUNT
CURRENT ACCOUNT BALANCE
CURRENT ACCOUNT DEFICIT
CURRENT ACCOUNT DEFICITS
CURRENT DEBT
DEBT BURDEN
DEBT FINANCING
DEBT GUARANTEE
DEBT LIABILITIES
DEBT MANAGEMENT
DEBT REPAYMENT
DEBT REPAYMENT SCHEDULE
DEBT REPAYMENTS
DEBT SERVICE
DEBT-SERVICE
DEFICITS
DEPOSIT
DEPOSITS
DEVELOPING COUNTRIES
DEVELOPMENT BANK
DIVIDENDS
DOMESTIC CREDIT
DOMESTIC CURRENCY
ECONOMIC DEVELOPMENTS
ECONOMIC GROWTH
ECONOMIC IMBALANCES
ECONOMIC POLICIES
ECONOMIC STABILITY
EQUIPMENT
ESTATE
EXCHANGE RATE
EXPENDITURE
EXPENDITURES
EXPORT GROWTH
EXTERNAL BORROWING
EXTERNAL BORROWINGS
EXTERNAL DEBT
EXTERNAL FINANCING
EXTERNAL POSITION
FINANCIAL ACCOUNT
FINANCIAL INFORMATION
FINANCIAL PERFORMANCE
FINANCIAL RESOURCE
FINANCIAL VULNERABILITIES
FISCAL BURDEN
FISCAL CAPACITY
FISCAL DEFICIT
FISCAL POLICY
FIXED INVESTMENT
FLOATING EXCHANGE RATE
FOREIGN CAPITAL
FOREIGN CURRENCY
FOREIGN CURRENCY LOANS
FOREIGN DIRECT INVESTMENT
FOREIGN EXCHANGE
FOREIGN EXCHANGE RESERVES
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOREIGN LIABILITIES
GOVERNMENT BOND
GOVERNMENT BOND YIELDS
GOVERNMENT BONDS
GOVERNMENT BUDGET
GOVERNMENT DEBT
GOVERNMENT GUARANTEE
HIGH INFLATION
HOLDINGS
HUMAN DEVELOPMENT
IMBALANCE
IMPORT
IMPORT COMPRESSION
IMPORTS
IMPORTS OF CONSUMPTION
INFLATION
INFLATION RATE
INFLATIONARY PRESSURE
INFORMATION SYSTEM
INSURANCE
INTEREST PAYMENT
INTEREST PAYMENTS
INTEREST RATE
INTERNATIONAL RESERVES
INTERNATIONAL STANDARDS
INVESTMENT INCOME
ISSUANCE
LABOR FORCE
LABOR MARKET
LENDING EXPOSURE
LIABILITY
LIABILITY COMPOSITION
LIQUID ASSETS
LIQUIDITY
LIQUIDITY SUPPORT
LOAN
LOAN APPLICATIONS
LOAN DEMAND
LOAN QUALITIES
LOAN QUALITY
LOAN RATIO
LOCAL GOVERNMENT
LONG-TERM LOAN
MACROECONOMIC POLICY
MARKET DATA
MATURITY
MONETARY AUTHORITIES
MONETARY CONDITIONS
MONETARY POLICY
MONEY SUPPLY
MORAL HAZARD
MORTGAGE
MORTGAGE LOAN
MORTGAGE LOANS
MORTGAGES
NON-PERFORMING LOAN
NON-PERFORMING LOANS
NONPERFORMING LOANS
NPL
OUTSTANDING LOANS
PENSION
PENSION SYSTEM
PENSIONS
PRICE INFLATION
PRIVATE LOANS
PRIVATE SECTOR CREDIT
PROCUREMENT
PROCUREMENT PLAN
PRUDENTIAL REGULATION
PRUDENTIAL REGULATIONS
PRUDENTIAL SUPERVISION
PUBLIC DEBT
PUBLIC DISCLOSURE
PUBLIC EXTERNAL DEBT
PUBLIC INFORMATION
PUBLIC SPENDING
RECEIVABLES
RECURRENT EXPENDITURES
REGULATORY FORBEARANCE
RESERVE
RESERVE REQUIREMENT
RESERVES
RESIDENTIAL MORTGAGE
RETURN
SALARIES
SAMURAI BOND
SAVINGS BANK
SHARE OF INVESTMENT
SOCIAL INSURANCE FUNDS
SOVEREIGN BOND
SOVEREIGN DEBT
STATE DEBT
STRUCTURAL PROBLEMS
SUPERVISORY AUTHORITIES
SURPLUS
SWAP
TAX
TAX REVENUE
TAX REVENUES
TIGHT MONETARY POLICY
TIME DEPOSIT
TRADE BALANCE
TRANSPARENCY
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
WAGES
spellingShingle ACCESS TO INFORMATION
ACCOUNTING
APR
ASSET QUALITY
ASSET RATIO
BACKED SECURITIES
BALANCE OF PAYMENT
BALANCE OF PAYMENTS
BALANCE SHEET
BANK ACCOUNTS
BANK ASSET
BANK ASSET QUALITY
BANK ASSETS
BANK CREDIT
BANK DEPOSIT
BANK FINANCING
BANK LIABILITIES
BANK LIABILITY
BANK LOAN
BANK LOANS
BANK MARKET
BANK POLICY
BANK RATE
BANKING SECTOR
BANKING SYSTEM
BASIS POINTS
BOND
BOND ISSUANCE
BROAD MONEY
BUDGET BALANCE
BUDGET DEFICIT
BUDGET DEFICITS
BUSINESS ­ ACCOUNTING
CAPITAL ADEQUACY
CAPITAL FORMATION
CAPITAL INFLOW
CENTRAL BANK
CENTRAL BANK BILL
CENTRAL BANK BILLS
CENTRAL BANK CREDIT
COMMERCIAL BANK
COMMERCIAL BANKS
COMMERCIAL DEBT
COMMERCIAL FINANCING
COMMERCIAL MORTGAGE
COMMERCIAL TERM
COMMERCIAL TERMS
COMMODITY MARKETS
COMMODITY PRICE
CONCESSIONS
CONSUMPTION GOODS
CONSUMPTION GROWTH
CREDIBILITY
CREDIT BOOM
CREDIT EXPANSIONS
CREDIT GROWTH
CREDIT QUALITY
CREDIT RISKS
CREDITORS
CREDITS
CURRENCY
CURRENCY DEPRECIATION
CURRENCY MISMATCH
CURRENCY SWAP
CURRENT ACCOUNT
CURRENT ACCOUNT BALANCE
CURRENT ACCOUNT DEFICIT
CURRENT ACCOUNT DEFICITS
CURRENT DEBT
DEBT BURDEN
DEBT FINANCING
DEBT GUARANTEE
DEBT LIABILITIES
DEBT MANAGEMENT
DEBT REPAYMENT
DEBT REPAYMENT SCHEDULE
DEBT REPAYMENTS
DEBT SERVICE
DEBT-SERVICE
DEFICITS
DEPOSIT
DEPOSITS
DEVELOPING COUNTRIES
DEVELOPMENT BANK
DIVIDENDS
DOMESTIC CREDIT
DOMESTIC CURRENCY
ECONOMIC DEVELOPMENTS
ECONOMIC GROWTH
ECONOMIC IMBALANCES
ECONOMIC POLICIES
ECONOMIC STABILITY
EQUIPMENT
ESTATE
EXCHANGE RATE
EXPENDITURE
EXPENDITURES
EXPORT GROWTH
EXTERNAL BORROWING
EXTERNAL BORROWINGS
EXTERNAL DEBT
EXTERNAL FINANCING
EXTERNAL POSITION
FINANCIAL ACCOUNT
FINANCIAL INFORMATION
FINANCIAL PERFORMANCE
FINANCIAL RESOURCE
FINANCIAL VULNERABILITIES
FISCAL BURDEN
FISCAL CAPACITY
FISCAL DEFICIT
FISCAL POLICY
FIXED INVESTMENT
FLOATING EXCHANGE RATE
FOREIGN CAPITAL
FOREIGN CURRENCY
FOREIGN CURRENCY LOANS
FOREIGN DIRECT INVESTMENT
FOREIGN EXCHANGE
FOREIGN EXCHANGE RESERVES
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOREIGN LIABILITIES
GOVERNMENT BOND
GOVERNMENT BOND YIELDS
GOVERNMENT BONDS
GOVERNMENT BUDGET
GOVERNMENT DEBT
GOVERNMENT GUARANTEE
HIGH INFLATION
HOLDINGS
HUMAN DEVELOPMENT
IMBALANCE
IMPORT
IMPORT COMPRESSION
IMPORTS
IMPORTS OF CONSUMPTION
INFLATION
INFLATION RATE
INFLATIONARY PRESSURE
INFORMATION SYSTEM
INSURANCE
INTEREST PAYMENT
INTEREST PAYMENTS
INTEREST RATE
INTERNATIONAL RESERVES
INTERNATIONAL STANDARDS
INVESTMENT INCOME
ISSUANCE
LABOR FORCE
LABOR MARKET
LENDING EXPOSURE
LIABILITY
LIABILITY COMPOSITION
LIQUID ASSETS
LIQUIDITY
LIQUIDITY SUPPORT
LOAN
LOAN APPLICATIONS
LOAN DEMAND
LOAN QUALITIES
LOAN QUALITY
LOAN RATIO
LOCAL GOVERNMENT
LONG-TERM LOAN
MACROECONOMIC POLICY
MARKET DATA
MATURITY
MONETARY AUTHORITIES
MONETARY CONDITIONS
MONETARY POLICY
MONEY SUPPLY
MORAL HAZARD
MORTGAGE
MORTGAGE LOAN
MORTGAGE LOANS
MORTGAGES
NON-PERFORMING LOAN
NON-PERFORMING LOANS
NONPERFORMING LOANS
NPL
OUTSTANDING LOANS
PENSION
PENSION SYSTEM
PENSIONS
PRICE INFLATION
PRIVATE LOANS
PRIVATE SECTOR CREDIT
PROCUREMENT
PROCUREMENT PLAN
PRUDENTIAL REGULATION
PRUDENTIAL REGULATIONS
PRUDENTIAL SUPERVISION
PUBLIC DEBT
PUBLIC DISCLOSURE
PUBLIC EXTERNAL DEBT
PUBLIC INFORMATION
PUBLIC SPENDING
RECEIVABLES
RECURRENT EXPENDITURES
REGULATORY FORBEARANCE
RESERVE
RESERVE REQUIREMENT
RESERVES
RESIDENTIAL MORTGAGE
RETURN
SALARIES
SAMURAI BOND
SAVINGS BANK
SHARE OF INVESTMENT
SOCIAL INSURANCE FUNDS
SOVEREIGN BOND
SOVEREIGN DEBT
STATE DEBT
STRUCTURAL PROBLEMS
SUPERVISORY AUTHORITIES
SURPLUS
SWAP
TAX
TAX REVENUE
TAX REVENUES
TIGHT MONETARY POLICY
TIME DEPOSIT
TRADE BALANCE
TRANSPARENCY
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
WAGES
Lee, Taehyun
Shiilegmaa, Altantsetseg
Batsuuri, Davaadalai
Mongolia Economic Update, December 2014
geographic_facet East Asia and Pacific
Mongolia
description In 2014, economic growth slowed as it began to adjust to unsustainable economic imbalances. Real GDP growth softened to 7 percent in the first 9 months, from 12.8 percent in the previous year. Despite strong mining production growth of 26 percent, the growth of the non-mining sector of the economy dropped to 2 percent in the third quarter from 17.4 percent a year ago. Investment sharply fell amidst declining FDI and weakening business prospects. Consumption remains relatively strong but is also gradually softening. The growth effect from stimulus measures of the last year is also wearing off in 2014 as large liquidity support from the central bank cannot be sustained in the wake of high inflation and external vulnerabilities. The current account deficit is narrowing significantly to around 11 percent of GDP from almost 30 percent in the previous three years, due to import contraction over 16 percent and stronger copper exports. However, a significant external financing gap continues amidst declining foreign investment, reducing internal reserves to less than three months import cover. Inflation remains in double digits after a strong credit boom in 2014 and continuous currency depreciation. Economic growth is likely to continue to soften in 2015 as the economy remains under pressure from the external imbalance and high inflation. To help achieve the goal of the new Solutions-oriented Government to overcome economic challenges and build a sound economic management system, the following policy actions are recommended to be considered in the economic policy framework: (1) Consolidate the off-budget spending made through the DBM into the budget; (2) prepare a credible and realistic fiscal consolidation plan to reduce the deficit; (3) monetary policy should be tightened; (4) further quasi-fiscal activities need to be avoided; and (5) the exchange rate should be left flexible.
format Report
author Lee, Taehyun
Shiilegmaa, Altantsetseg
Batsuuri, Davaadalai
author_facet Lee, Taehyun
Shiilegmaa, Altantsetseg
Batsuuri, Davaadalai
author_sort Lee, Taehyun
title Mongolia Economic Update, December 2014
title_short Mongolia Economic Update, December 2014
title_full Mongolia Economic Update, December 2014
title_fullStr Mongolia Economic Update, December 2014
title_full_unstemmed Mongolia Economic Update, December 2014
title_sort mongolia economic update, december 2014
publisher World Bank Group, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2014/12/24195219/mongolia-economic-update-december-2014
http://hdl.handle.net/10986/21802
_version_ 1764449206671507456
spelling okr-10986-218022021-04-23T14:04:04Z Mongolia Economic Update, December 2014 Lee, Taehyun Shiilegmaa, Altantsetseg Batsuuri, Davaadalai ACCESS TO INFORMATION ACCOUNTING APR ASSET QUALITY ASSET RATIO BACKED SECURITIES BALANCE OF PAYMENT BALANCE OF PAYMENTS BALANCE SHEET BANK ACCOUNTS BANK ASSET BANK ASSET QUALITY BANK ASSETS BANK CREDIT BANK DEPOSIT BANK FINANCING BANK LIABILITIES BANK LIABILITY BANK LOAN BANK LOANS BANK MARKET BANK POLICY BANK RATE BANKING SECTOR BANKING SYSTEM BASIS POINTS BOND BOND ISSUANCE BROAD MONEY BUDGET BALANCE BUDGET DEFICIT BUDGET DEFICITS BUSINESS ­ ACCOUNTING CAPITAL ADEQUACY CAPITAL FORMATION CAPITAL INFLOW CENTRAL BANK CENTRAL BANK BILL CENTRAL BANK BILLS CENTRAL BANK CREDIT COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL DEBT COMMERCIAL FINANCING COMMERCIAL MORTGAGE COMMERCIAL TERM COMMERCIAL TERMS COMMODITY MARKETS COMMODITY PRICE CONCESSIONS CONSUMPTION GOODS CONSUMPTION GROWTH CREDIBILITY CREDIT BOOM CREDIT EXPANSIONS CREDIT GROWTH CREDIT QUALITY CREDIT RISKS CREDITORS CREDITS CURRENCY CURRENCY DEPRECIATION CURRENCY MISMATCH CURRENCY SWAP CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT DEBT DEBT BURDEN DEBT FINANCING DEBT GUARANTEE DEBT LIABILITIES DEBT MANAGEMENT DEBT REPAYMENT DEBT REPAYMENT SCHEDULE DEBT REPAYMENTS DEBT SERVICE DEBT-SERVICE DEFICITS DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPMENT BANK DIVIDENDS DOMESTIC CREDIT DOMESTIC CURRENCY ECONOMIC DEVELOPMENTS ECONOMIC GROWTH ECONOMIC IMBALANCES ECONOMIC POLICIES ECONOMIC STABILITY EQUIPMENT ESTATE EXCHANGE RATE EXPENDITURE EXPENDITURES EXPORT GROWTH EXTERNAL BORROWING EXTERNAL BORROWINGS EXTERNAL DEBT EXTERNAL FINANCING EXTERNAL POSITION FINANCIAL ACCOUNT FINANCIAL INFORMATION FINANCIAL PERFORMANCE FINANCIAL RESOURCE FINANCIAL VULNERABILITIES FISCAL BURDEN FISCAL CAPACITY FISCAL DEFICIT FISCAL POLICY FIXED INVESTMENT FLOATING EXCHANGE RATE FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN CURRENCY LOANS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN LIABILITIES GOVERNMENT BOND GOVERNMENT BOND YIELDS GOVERNMENT BONDS GOVERNMENT BUDGET GOVERNMENT DEBT GOVERNMENT GUARANTEE HIGH INFLATION HOLDINGS HUMAN DEVELOPMENT IMBALANCE IMPORT IMPORT COMPRESSION IMPORTS IMPORTS OF CONSUMPTION INFLATION INFLATION RATE INFLATIONARY PRESSURE INFORMATION SYSTEM INSURANCE INTEREST PAYMENT INTEREST PAYMENTS INTEREST RATE INTERNATIONAL RESERVES INTERNATIONAL STANDARDS INVESTMENT INCOME ISSUANCE LABOR FORCE LABOR MARKET LENDING EXPOSURE LIABILITY LIABILITY COMPOSITION LIQUID ASSETS LIQUIDITY LIQUIDITY SUPPORT LOAN LOAN APPLICATIONS LOAN DEMAND LOAN QUALITIES LOAN QUALITY LOAN RATIO LOCAL GOVERNMENT LONG-TERM LOAN MACROECONOMIC POLICY MARKET DATA MATURITY MONETARY AUTHORITIES MONETARY CONDITIONS MONETARY POLICY MONEY SUPPLY MORAL HAZARD MORTGAGE MORTGAGE LOAN MORTGAGE LOANS MORTGAGES NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOANS NPL OUTSTANDING LOANS PENSION PENSION SYSTEM PENSIONS PRICE INFLATION PRIVATE LOANS PRIVATE SECTOR CREDIT PROCUREMENT PROCUREMENT PLAN PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION PUBLIC DEBT PUBLIC DISCLOSURE PUBLIC EXTERNAL DEBT PUBLIC INFORMATION PUBLIC SPENDING RECEIVABLES RECURRENT EXPENDITURES REGULATORY FORBEARANCE RESERVE RESERVE REQUIREMENT RESERVES RESIDENTIAL MORTGAGE RETURN SALARIES SAMURAI BOND SAVINGS BANK SHARE OF INVESTMENT SOCIAL INSURANCE FUNDS SOVEREIGN BOND SOVEREIGN DEBT STATE DEBT STRUCTURAL PROBLEMS SUPERVISORY AUTHORITIES SURPLUS SWAP TAX TAX REVENUE TAX REVENUES TIGHT MONETARY POLICY TIME DEPOSIT TRADE BALANCE TRANSPARENCY UNEMPLOYMENT RATE UNEMPLOYMENT RATES WAGES In 2014, economic growth slowed as it began to adjust to unsustainable economic imbalances. Real GDP growth softened to 7 percent in the first 9 months, from 12.8 percent in the previous year. Despite strong mining production growth of 26 percent, the growth of the non-mining sector of the economy dropped to 2 percent in the third quarter from 17.4 percent a year ago. Investment sharply fell amidst declining FDI and weakening business prospects. Consumption remains relatively strong but is also gradually softening. The growth effect from stimulus measures of the last year is also wearing off in 2014 as large liquidity support from the central bank cannot be sustained in the wake of high inflation and external vulnerabilities. The current account deficit is narrowing significantly to around 11 percent of GDP from almost 30 percent in the previous three years, due to import contraction over 16 percent and stronger copper exports. However, a significant external financing gap continues amidst declining foreign investment, reducing internal reserves to less than three months import cover. Inflation remains in double digits after a strong credit boom in 2014 and continuous currency depreciation. Economic growth is likely to continue to soften in 2015 as the economy remains under pressure from the external imbalance and high inflation. To help achieve the goal of the new Solutions-oriented Government to overcome economic challenges and build a sound economic management system, the following policy actions are recommended to be considered in the economic policy framework: (1) Consolidate the off-budget spending made through the DBM into the budget; (2) prepare a credible and realistic fiscal consolidation plan to reduce the deficit; (3) monetary policy should be tightened; (4) further quasi-fiscal activities need to be avoided; and (5) the exchange rate should be left flexible. 2015-04-28T16:03:35Z 2015-04-28T16:03:35Z 2014-12 Report http://documents.worldbank.org/curated/en/2014/12/24195219/mongolia-economic-update-december-2014 http://hdl.handle.net/10986/21802 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank Group, Washington, DC Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling East Asia and Pacific Mongolia