Mongolia Economic Update, November 2015

Mongolia Economic Update, November 2015

Mongolia’s growth sharply slowed to 3.0 percent in the first half of 2015. External demand is weakening due to a continued dampening of the commodity market and slower growth in China, translating into a drop in exports. Slowing domestic demand is...

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Bibliographic Details
Main Author: World Bank Group
Format: Report
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
BUDGET DEFICIT
COMMERCIAL SPENDING
COMMODITY MARKET
ECONOMY
EXPORTS
FISCAL STABILITY LAW
FOREIGN INVESTMENTS
NON-MINING SECTORS
Online Access:http://documents.worldbank.org/curated/en/2015/11/25479527/mongolia-economic-update
http://hdl.handle.net/10986/23337
id okr-10986-23337
recordtype oai_dc
spelling okr-10986-233372021-04-23T14:04:14Z Mongolia Economic Update, November 2015 World Bank Group BUDGET DEFICIT COMMERCIAL SPENDING COMMODITY MARKET ECONOMY EXPORTS FISCAL STABILITY LAW FOREIGN INVESTMENTS NON-MINING SECTORS Mongolia’s growth sharply slowed to 3.0 percent in the first half of 2015. External demand is weakening due to a continued dampening of the commodity market and slower growth in China, translating into a drop in exports. Slowing domestic demand is largely caused by a plunge in investment due to falling foreign direct investment (FDI). Measures were taken to curb the budget deficit, debt, and off-budget expenditures. New deficit and debt ceilings were set for 2015-18 by amending the fiscal stability law (FSL) in January. The 2015 budget was amended in January to curb the structural deficit within 5 percent of gross domestic product (GDP). Growth is expected to slow in 2015-16, but a recovery in foreign investment will begin to support the growth of the non-mining sector in 2016. The Development Bank of Mongolia (DBM) is expected to provide about Mongolian Tughrik rates (MNT) 600 billion to its commercial portfolio in 2015, and to further reduce its commercial spending to MNT 300-400 billion in the next couple of years due to tight financing conditions. Under these assumptions, the commercial projects financed by the DBM are expected to around 3 percent of GDP in 2015, and decline to 1-1.5 percent of GDP in 2016. 2015-12-14T20:39:09Z 2015-12-14T20:39:09Z 2015-11 Report http://documents.worldbank.org/curated/en/2015/11/25479527/mongolia-economic-update http://hdl.handle.net/10986/23337 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work East Asia and Pacific Mongolia
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 BUDGET DEFICIT
COMMERCIAL SPENDING
COMMODITY MARKET
ECONOMY
EXPORTS
FISCAL STABILITY LAW
FOREIGN INVESTMENTS
NON-MINING SECTORS
spellingShingle BUDGET DEFICIT
COMMERCIAL SPENDING
COMMODITY MARKET
ECONOMY
EXPORTS
FISCAL STABILITY LAW
FOREIGN INVESTMENTS
NON-MINING SECTORS
World Bank Group
Mongolia Economic Update, November 2015
geographic_facet East Asia and Pacific
Mongolia
description Mongolia’s growth sharply slowed to 3.0 percent in the first half of 2015. External demand is weakening due to a continued dampening of the commodity market and slower growth in China, translating into a drop in exports. Slowing domestic demand is largely caused by a plunge in investment due to falling foreign direct investment (FDI). Measures were taken to curb the budget deficit, debt, and off-budget expenditures. New deficit and debt ceilings were set for 2015-18 by amending the fiscal stability law (FSL) in January. The 2015 budget was amended in January to curb the structural deficit within 5 percent of gross domestic product (GDP). Growth is expected to slow in 2015-16, but a recovery in foreign investment will begin to support the growth of the non-mining sector in 2016. The Development Bank of Mongolia (DBM) is expected to provide about Mongolian Tughrik rates (MNT) 600 billion to its commercial portfolio in 2015, and to further reduce its commercial spending to MNT 300-400 billion in the next couple of years due to tight financing conditions. Under these assumptions, the commercial projects financed by the DBM are expected to around 3 percent of GDP in 2015, and decline to 1-1.5 percent of GDP in 2016.
format Report
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Mongolia Economic Update, November 2015
title_short Mongolia Economic Update, November 2015
title_full Mongolia Economic Update, November 2015
title_fullStr Mongolia Economic Update, November 2015
title_full_unstemmed Mongolia Economic Update, November 2015
title_sort mongolia economic update, november 2015
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/11/25479527/mongolia-economic-update
http://hdl.handle.net/10986/23337
_version_ 1764453533059383296

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