In March, equilibrated revenue and grants of the General Government Budget reached MNT 709.1 billion, decreased by MNT 54.7 billion or 7.2 percent, whereas total expenditure and net lending reached MNT 816.8 billion, increased by MNT 222.7 billion or 37.5 percent from the previous month.

In the first quarter of 2019, tax revenue reached MNT 1971.5 billion, increased by MNT 353.4 billion or 21.8 percent compared with the same period of previous year. This growth was mainly affected by increases of MNT 125.3 billion or 30.4 percent in income tax, MNT 94.6 billion or 27.5 percent in social security revenue, MNT 56.6 billion or 36.1 percent in other tax, MNT 48.9 billion or 29.7 percent in excise taxes, MNT 29.7 billion or 23.8 percent in revenue from foreign activities and MNT 0.7 billion or 0.2 percent in value added taxes.

General Government budget revenue was comprised of 81.0 percent of tax revenue, 7.9 percent of non-tax revenue, 10.5 percent of the future heritage fund and 0.6 percent of the stabilization fund.

In the first quarter of 2019, total expenditure and net lending of the General Government Budget according to the preliminary results amounted to MNT 1969.1 billion, increased by MNT 132.5 billion or 7.2 percent compared with the same period of previous year. This increase is mainly due to MNT 179.9 billion or 11.1 percent increase in current expenditure, even though interest expenditure decreased by MNT 59.0 billion or 25.6 percent, capital expenditure decreased by MNT 42.1 billion or 20.0 percent and subsidies decreased by MNT 23.8 billion or 31.4 percent. General Government Budget expenditure and net lending was comprised of 91.5 percent of current expenditure and 8.5 percent of capital expenditure.

Source: National Statistics Office of Mongolia

In March 2019, the gross industrial output reached MNT 1.3 trillion and increased by MNT 128.1 billion (10.6 percent) compared to the previous month.

In March 2019, the seasonally adjusted industrial production index was 187.3 (2010=100), increased by 5.3 percent from the same period of the previous year and by 6.5 percent from the previous month, whereas, it decreased by 0.2 percent from the end of the previous year.

In the first quarter of 2019, in mining sector, extraction of zinc concentrate, iron ore, copper concentrate, coal and gravel are increased by 2.4-43.2 percent compared to the same period of 2018. In manufacturing sector, production of beer, vacuum windows and doors, cashmere products, buuz and dumpling, combed cashmere and wooden window and door are increased by 2.0-97.1 percent.

On the other hand, in mining sector, extraction of fluorspar, crude oil, molybdenum concentrate and gold decreased by 4.2-30.1 percent. In manufacturing sector, productions of wooden products, copper cathode, sausage products, alcoholic beverage, fodder and horse meat are decreased by 1.6-48.1 percent.

In the first quarter of 2019, the sales of industrial production reached MNT 4.6 trillion, increased by MNT 790.9 billion (20.7 percent) from the same period of previous year. From the total sales of industrial production, MNT 3.4 trillion (74.1 percent) were export.

Source: National Statistics Office of Mongolia

The winter sports palace is planned to have:

- 5,700 sq.m usable area

- 2,600 seats

- an Olympic-sized ice rink with dimensions of 60 metres by 30 metres

- accessible roads and area for people with disabilities

- systems for ice rink refrigeration and ventilation widely used in North America and Europe

- the possibility to transform the ice rink into a concert venue as well as for the use of other sports.

The architectural design was done by the Mongolian company, Anagram LLC, in partnership with the Canadian companies, HDR/CEI and VDA, according to the guideline of the International Hockey Federation.

President Kh.Battulga then highlighted that the construction must be finished on time, and gave remarks.

He said, “One of the examples of how we, Mongolians, can achieve anything as long as we join together is the decision of the national companies to join forces to build the Winter Sports Palace.

The Children of Asia International Sports Games will be organized under the auspices of the President of Mongolia in Ulaanbaatar in August 2020. The East Asian Youth Games will also take place in Ulaanbaatar in 2023. A part of the construction works in preparation for the international sports games is the Winter Sports Palace.
Furthermore, a swimming pool of 50 metres and a football stadium with 10,000 seats will be built. As you all may know, we also have the Buyant Ukhaa Sports Complex located closeby. It should be also mentioned that the issue of accommodation for the participating athletes has been resolved. For the hopes and dreams of children, youth and athletes, I hope that the sports complexes--especially, the Winter Sports Palace will be put into operation on time."

The President congratulated Mongolian hockey players for becoming the winners of the Challenge Cup of Asia two years in a row with their practices held in outdoor rinks. "As the construction of the winter palace completes, it will then become possible to host Asian as well as other large-scale international tournaments in our home country. I am also confident that the number of children interested in the sport will increase.”

After the President’s remarks, national hockey team coach A.Mergen and representative of the new generation of figure skaters G.Maral-Erdene shared their thoughts on how the winter sports palace gives them more motivation. Students training in ice hockey and figure skating did a demonstration show during the ceremony.

Last week, Foreign Minister D.Tsogtbaatar visited Beijing regarding the president’s visit to China.

Previously, Mongolian President Kh.Battulga met Chinese leader Xi Jinping in Qindao in July 2018 during the leaders’ meeting of the Shanghai Cooperation Organization.

Mongolia plans to export 42 million tons of coal for MNT 1.3 trillion return in 2019. With this amount of money being generated from coal revenue, this year's budget will be much higher. The country could spend the budget on social projects such as schools, kindergartens, and hospitals in the capital city and rural areas. We have been resetting the historical record of coal exports for the last three consecutive years and might renew it this year.

Mongolia has a chance to expand its market in the southern neighbors, and to have a strategic relationship with China in the coal trade. The S&P Global Platts survey shows that the coking coal prices have risen by over USD 20 per ton since the beginning of this year. Coal prices will remain steady throughout the year. The price of coking coal is expected to reach USD 250 per ton, exceeding the previous year's price, according to the Vice-President of Fenwei Energy Information Services Co., Ltd. Sarah Liu.
Coal prices will remain steady throughout the year

The Chinese side emphasized that China's coal reserves will increase beyond 36 million tons in the south at China's "Coking Coal Resources and Market" world conference. Furthermore, the demand for high-quality coking coal remains high. Within the framework of the Blue Sky plan implemented by China, the region's major industrial zones began to shift from the sea to the north. Chinese market will come closer to Mongolia as a result. The seaborne coking coal price is starting to become expensive in the northern part of the country, where the industry is developing and steel production is in process.

According to the Ministry of Finance, Mongolia's coal export increased by 15 percent to 7.8 million tons over the same period of the previous year. In the second quarter, we can expect more growth in coal exports, says a correspondent of the ministry.

Landlocked Mongolia is heavily dependent on demand for coal and copper from China, its southern neighbour and the buyer of more than 90 percent of its exports.

China has sharply reduced purchases of Australian coal after clearing times through China’s customs doubled to more than 40 days amid growing tensions between Beijing and Canberra over issues ranging from cyber security to Beijing’s influence in Pacific island nations.

Naranbaatar Lundeg, an economist and member of the Australian Institute of Mining and Metallurgy, said the problems faced importing coal from Australia had “opened up opportunities” for Mongolian suppliers.

“This might continue until May, due to the parliamentary elections in Australia,” he said.

Mongolia’s export earnings from coal over the first three months of the year reached $644 million, up 25 percent compared to a year earlier, the country’s statistics office said.

The rise in coal exports helped drive up Mongolia’s total industrial output from coal mining by 64.9 percent over the period.

Mongolia’s industrial output rose 17.5 percent over the first quarter, while the total value of the country’s exports rose 19.5 percent, the statistics office said.

Reporting by Munkhchimeg Davaasharav in ULAANBAATAR Writing by David Stanway; Editing by Simon Cameron-Moore

The AAFA has expressed its support for the Mongolia Third Neighbor Trade Act after it was introduced to both US legislative chambers, the House and the Senate. The proposed bill would provide duty-free access to the US market for products made in Mongolia, using the one of the nation’s most renowned exports: cashmere.

“Mongolian cashmere is a brand in and of itself,” stated Rick Helfenbein, president and CEO of the AAFA. “This bill would provide a market for Mongolia’s authentic cashmere, supporting growth and creating jobs throughout the U.S. cashmere value chain.

“At the same time, by passing the Mongolia Third Neighbor Trade Act, Congress would forge a stronger partnership with our friends in Mongolia and provide American consumers with better access to these high-end products.”

Regarding America’s future trading relationship with India, the AAFA has, along with 24 other trade associations, sent an open letter to the US Trade Representative to share their collective concern over the plan to terminate India's GSP status, urging the extension of talks to reach a mutually agreeable solution.

The coalition of industry organisations states that the anticipated move by the US to end the agreement appears to "disregard the way in which this programme helps lift hundreds of millions of people out of extreme poverty," before adding that "Congress prioritised this development imperative, as the original intent of GSP was to 'further...the economic development of developing countries through the expansion of their exports' and years later in its renewal remained 'to assist their economic development and diversification through preferential market access'.”

Co-signed by senators John Cornyn and Mark Warner, an additional letter appeals for a delay to the decision due in no small part to the fact that India is currently in the midst of a general election – a factor which they suggest would be a hindrance to meaningful time and resources being allocated to negotiate trading arrangement.

Bangladesh had its GSP status rescinded after the fateful Rana Plaza collapse of 2013, and has since remained unable to regain its previous arrangement – despite several concerted attempts.

Web: aafaglobal.org

The increase was a result of several factors, including the implementation of the three-year Extended Funding Facility (EFF) of the International Monetary Fund (IMF) in Mongolia and higher commodity prices in the global market.

The three-year IMF program, approved in May 2017, is aimed at stabilizing the economy and establish a basis for more sustainable and inclusive growth. Mongolia’s foreign currency reserves have more than doubled since the start of the program.

Meanwhile, the Mongolian Central Bank has set a goal to increase its foreign exchange reserves to 4 billion dollars in the near future.

The official said: “The IMF is in very close collaboration with the Chinese authorities on sharing the best international practices, especially regarding fiscal sustainability and capacity building,” not only for Chinese officials, but also for officials from low-income countries that have joined in the BRI.

According to Rhee, the fund has opened the China-IMF Capacity Development Center in Beijing in order to provide personnel training, support institution building, and boost communication for countries along the Belt and Road.

China’s BRI megaproject (dubbed the new Silk Road) which was announced six years ago by President Xi Jinping covers 152 countries in Europe, Asia, the Middle East, Latin America, and Africa. It is expected to significantly boost global trade, and cut trading costs by half for the countries involved.

China’s contribution to the world’s economy will increase, according to Rhee, who noted the country is expected to account for more than 30 percent of global growth this year.

“We welcome the Chinese government’s recent announcement of a growth target in the form of a range, not a point target,” Rhee said. “I think that is quite consistent with the authorities’ emphasis on the quality of growth rather than just maintain high quantity growth.”

The IMF has projected that China’s economy will grow by 6.3 percent this year, higher than the previous forecast of 6.2 percent.