The index ticked up to 49.5, but remained below the 50-point level that separates growth from contraction.

China reported its weakest economic expansion in 28 years in 2018, and growth is expected to slow further.

Already, a number of multinationals have said sluggish growth in China has affected their bottom line.

The manufacturing data was up slightly from the 49.4 level recorded in December.

Marcel Thieliant, economist at Capital Economics, said while the PMI didn't weaken any further in January, "it still suggests that the economy lost momentum at the start of the year".

Other data, such as consumer sentiment and retail sales figures, also point to weakening demand in the world's second largest economy.

Several international companies have warned on China's slowdown, including Apple.

The tech giant blamed a 5% fall in revenues partly on China.

Shares of industrial equipment giant Caterpillar took a beating earlier this week, after the company reported its sales slipped 4%, largely due to slow sales in China.

Chipmaker Nvidia also reported softer sales due to a sluggish Chinese market.

3M, which makes products from adhesive tapes to air filters, also said weak customer demand in China affected its bottom line.

China has been attempting to reform its economy to rely more on domestic consumption instead of exports and investment to fuel growth.

The US-China trade war is also creating economic uncertainty.

The latest figures come as officials from both sides meet in Washington to try ease trade tensions.

If the two sides cannot reach an agreement by 1 March, the US has said it will increase the tariff rate from 10% to 25% on Chinese goods worth an estimated $200bn (£154.4bn).

Within the project, the Cabinet backed to introduce electric buses: 1200 for public transport service and 250 for child transportation. In connection, it is planned to establish unified control center with smart system, four international standard bus depots and modernize three bus depots of ‘Passenger transport service’ public-owned company.

The project worth MNT854 billion will be implemented under concession. The use of electric buses in public transportation service of the city will decrease greenhouse gas, carbon monoxide, nitrogen dioxide, sulfuric gas and dusts being produced by 1046 buses and improve air quality in the city.

Tens of thousands of people took to the streets in late December to protest against Enkhbold and the two main political parties, the Mongolian People’s Party and the Democratic Party.

Public unrest has simmered throughout January, with a cross-party group of legislators boycotting parliament. Some protesters began hunger strikes on Ulaanbaatar’s central Sukhbaatar Square on Jan. 10.

The role of foreign investment in resource-rich Mongolia’s development has also come under scrutiny, with many nationalist politicians complaining that strategic assets have been sold off to foreign firms on the cheap.

Enkhbold denied accusations of corruption and declined to resign, but parliament voted in favour of forcing his dismissal late on Tuesday in a procedure initiated by President Khaltmaa Battulga, who defeated Enkhbold in a 2017 election.

“I was not playing tricks to save my position, I believed this problem should be solved legally,” Enkhbold said, complaining that the dismissal procedure undermined parliamentary democracy.

He could not be reached for comment on Wednesday.

Audio recordings released by a whistleblower in 2016 were believed to implicate a number of politicians in a scheme aimed at raising 60 billion tugrik ($23 million) in campaign funds for parliamentary elections that year, which were won by Enkhbold’s Mongolian People’s Party.

Five members of parliament have led efforts against Enkhbold and the two parties, and they announced on Monday they had formed a group called “Wealth Owner Mongolia” that would fight against corruption and nationalise mines of “strategic” importance.

Mongolia’s biggest foreign-invested project, the Oyu Tolgoi copper-gold mine run by Anglo-Australian giant Rio Tinto, is also at the centre of a corruption investigation involving a former finance minister who signed the original 2009 investment deal.

Mongolia is working with overseas investigators to look into suspected corruption at the mine, the anti-graft agency said on Tuesday, after the re-arrest of the minister.

(This version of the story corrects date of whistleblower activity in paragraph 8 to 2016, not “last year”)

Reporting by Munkhchimeg Davaasharav; Editing by David Stanway and Robert Birsel

The sharp decrease is directly related to the expiration of the effective period of low royalty taxes on gold with the 2014 amendments to the Minerals Law, according to experts of the Bank of Mongolia, reports Xinhua.

The amendments, which have played an important role in hiking gold sales to the central bank over the past five years, expired on Jan. 1.
The bank of Mongolia purchased only 12.7 tons of gold in 2014.

In 2011, Mongolia’s economic growth reached its highest peak of 17.3%. According to the Asian Development Bank Outlook 2018, Mongolia’s GDP which was 5.1% in 2017 was predicted to slow down in 2018, predicting a rise of only 3.8%. However, the rate of growth in 2019 is expected to increase by 4.3%.

Economic growth in 2018 was affected by higher prices of raw materials, an increase in coal exports and the recovery of foreign investment.

The meeting convened representatives from AmCham member organizations, state agencies, international development organizations, foreign embassies, and domestic and international businesses. Minister Tsogtbaatar provided updates on the government’s trade and investment policy priorities, and outlined the challenges being encountered.

In his address, Minister Tsogtbaatar noted, “Mongolia’s foreign trade turnover reached nearly 13 billion USD in 2018 – a record-high performance – with export equivalent to almost 7 billion USD, while the FDI grew 1.5-fold over the past year compared to 2015.” He highlighted the importance of expanded Mongolia-U.S. comprehensive partnership and the latest developments in bilateral relations between Mongolia and the U.S., including the Mongolia Third Neighbor Trade Act and the Millennium Challenge Corporation Second Compact, while stressing AmCham Mongolia’s role as a bridge connecting investors to state authorities.

Following the Minister’s keynote address, Chargé d’Affaires a.i. Manuel P. Micaller delivered remarks, stating, “With the new year ahead of us, I want to lay out our economic priorities for 2019: what we hope to accomplish in 2019 in partnership with Amcham and the Mongolian government. The Transparency Agreement is perhaps the most relevant to AmCham members, which requires that new laws, rules, and regulations be subject to a public comment period before becoming final. It is a key element of the Indo-Pacific strategy – combining our two goals of transparency and private sector-led growth into a treaty that will form a cornerstone of our economic partnership once implemented.”

Chairman of AmCham Mongolia Mr. Oybek N. Khalilov delivered opening remarks, and stated, “AmCham Mongolia will continue to work closely with the Government of Mongolia to promote the growth of a strong and competitive private sector across all industries, and to attract investment to the Mongolian economy. AmCham Mongolia’s Roadmap for Growth 2019, a document presenting the framework for our policy and advocacy priorities, will be focused on supporting the country’s economic growth by regaining the interest of foreign investors.”

source: amcham.mn

The financing went toward a 10MW PV project in Mongolia, which was completed at the end of 2018. Now operational, the installation has already started to feed energy into Mongolia’s main electricity grid to help spur the country’s transition to renewables. The project was developed at the Sumber Soum area of Mongolia’s southern Govisümber province.

XacBank was able to fund the project in a little over half a year thanks a long-term, concessional loan of US$8.7 million provided by GCF. The site, built with a total investment of US$17.6 million, is expected to cut greenhouse gas emissions by 12,270 tons annually, while also providing 15,395 MWh of electricity every year.

Ayaan Adam, Director of GCF’s Private Sector Facility, said: “This marks an important turning point for Mongolia, which has previously relied on overseas financial institutions to fund large-scale solar generation. XacBank has shown that, with initial concessional loan support from GCF, it is possible for local businesspeople to set their own course in addressing the climate challenge. I hope the commissioning of this solar plant will serve as a model to show how the local private sector can expand renewable markets, not just in Mongolia but also in other countries.”

XacBank CEO Bold Magvan added: “Mongolia has already experienced climate change at an accelerated pace, with rising temperatures and land degradation driving migration and livelihood instability. Completing the plant is symbolic for combating those effects, as well as a tangible decarbonisation of Mongolia’s energy supply.“

The 10MW site is being operated by Mongolian company ESB, while Japan’s Sankou Seiki offered technical input during its construction, along with the assembly of the plant’s 31,000 PV panels.

After the ousting, Mr. Enkhbold addressed, “the Parliament has ratified the bill in its full power and I am retiring from my position in accordance with the law. I believe this is a gray day in the history of the Parliament of Mongolia. I hope no other Speaker would be ousted in the same manner.”

Other MPs, namely Erdene Sodnomzundui and Munkh-Orgil Tsend, also expressed the necessity to annul the amendments to the Law on the Procedures of Parliamentary Plenary Session that allows the majority of MPs to oust the Parliament Speaker. Mr. Munkh-Orgil remarked, “Dismissal of a single authority will not brighten the situation. It is important for the people that requested to oust the Speaker shall revoke the bill.”

Accordingly, the Parliament has to appoint the next Speaker before moving onto other items on the order list, including the ousting of Minister of Education, Culture, Science and Sports Tsogzolmaa Tsedenbal, and the recently appointed Minister of Road and Transport Development Sodbaatar Yangug. Another key item is the bill on Minerals, which will extend the 2.5 percent gold royalty for three years. The bill was retracted by the Mongolian People’s Party caucus last week as the Minister of Mining and Heavy Industry Sumiyabazar Dolgorsuren was on a working visit abroad and a certain change had to be made on schedules.

As the last speech as the Parliament Speaker, Mr. Enkhbold stressed “Aside from the last two months, I am confident that the Parliament performed well under my leadership. We took the office in times of depression. We focused on grave issues the country was facing. I understand that the public is upset because of the difficult living environment. But I want to address the organizers of public demonstrations. You have shown us that you can discard all the misconducts of the last two decades on one person. I worry about the potential establishment of control and oppression in the Mongolian Government. I am saying this in this chamber deliberately and responsibly. May the State stay strong and may virtue be heavy.”

About bilateral economic ties and cooperation, Deputy General Director for Foreign Economic Activity at Minsk Department of the Belarusian Chamber of Commerce and Industry Dubova Tatyana Yaroslavovna said “We have come to Mongolia to augment trade volume in Mongolia and to broaden cooperation. Representative offices of the Belarusian biggest machinery and equipment companies have been operating in Mongolia. This time, we signed an agreement on supplying elevator for flour mill. Also the two Chambers of Commerce and Industry renewed cooperation agreement.

15 representatives of 11 Belarussian companies in the fields of mining, food, agriculture and energy arrived Mongolia. At the meeting, the businessmen mostly touched upon transportation issues. “For example, when supplying equipment from Belarusia to a meat processing plant in Uvs aimag, the transportation must pass through Ulaanbaatar instead of directly transporting through border station of neighboring Russia. The Belarusian side asked relevant public organizations to help solving this problem, MNCCI General Secretary E.Oyuntegsh said.

Present at the meeting were Ambassador of Belarus to Mongolia S.Chepurnoy and trade representatives of the Embassy of Russia in Mongolia. Business delegation from Belarus will visit Mongolia for two days.

Enkhbold Miyegombo, a former presidential candidate and prime minister, has been under pressure to resign since a failed no-confidence vote against the current prime minister in November.

Five MPs had spearheaded calls for Enkhbold's resignation, leading a boycott of parliament that paralysed the legislature for a month.

Thousands of protesters gathered in December and January to vent their anger at corruption, bribery scandals and embezzlement of government funds.

Enkhbold has been accused of selling government positions, such as vice minister and state secretary, to raise at least 60 billion tugrik (US$24 million).

Earlier this month, President Khaltmaa Battulga - who defeated Enkhbold in the 2017 presidential election - introduced legislation to allow a vote to oust the speaker.

Political instability has been a constant problem for the young Central Asian democracy, which passed its first constitution in 1992 after decades of Communist rule.

Enkhbold said he had done his job "well" and that banking and financial regulations passed under his watch had helped the economy.

"You can see that all the bad things that happened in the past 20 years can be blamed on just one person," Enkhbold said.

"Maybe to solve all the problems in today's society I was to become the scapegoat," he said.