The current account and investment expenditure are expected to increase this year. According to the BoM, this will stimulate the growth of non-mining sectors and will raise the economy slightly above expectation. These sectors include construction, energy, processing, and retails. Although the economic growth is expected to be stable this year on the back of the progress in non-mining; however, the same growth driver will be the downside limitation for the economy in 2020, noted the BoM. On the other hand, the Government has a more optimistic expectation of 8 percent GDP growth based on four factors, namely the tax reform, budget investment, wage raise, and the construction of the oil refinery. The bill on tax reform has been submitted to the Parliament, but it has been put on hold on the order list.

As for international organizations, the outlook on economic growth is around 6-6.6 percent this year. In specific, the Asian Development Bank forecasts the GDP to rise 6.1 percent, which is 0.3 percentage point lower than the last year’s outlook. The bank previously explained that the investment in mining will continue on further; however, the growth will start to flatten.

International Monetary Fund predicted a 6 percent growth during the sixth review under the extended arrangement. Furthermore, the World Bank Group identified the key challenges to the economy, which includes the settlement of coal transportation issue at the border, growing uncertainty in politics and policy, as well as the adverse impact on the continuation of megaprojects prompted by the 2020 election.

Specifically, I-III class wheat will receive incentive of MNT 45.5 thousand per ton and IV class MNT 41 thousand.
Last year, wheat was sown on 343.9 thousand hectares nationwide. As a result, 428.6 thousand tons of crops were harvested, of which 280 thousand tons of good quality wheat were supplied. With this volume of harvest, domestic flour needs can be ensured.

Huawei's Meng Wanzhou was arrested in Vancouver last month at the request of US authorities. It's alleged she was involved in company violations of American sanctions against Iran. Meng is currently out on bail, and Washington reportedly has to issue an extradition request until the end of January.

Chinese Foreign Ministry Spokesperson Hua Chunying says that Beijing urge Washington to retract the arrest warrant and not make a formal extradition request to Ottawa.
She also says the US and Canada have infringed on the safety and rights of a Chinese citizen.

Meng's case has caused friction between Ottawa and Beijing. Two Canadians have been arrested in China on spying allegations since her arrest.
Earlier this week, more than 140 academics and former diplomats released an open letter to the Chinese president calling for their release.

The event plays an important role to expanding business cooperation between the two countries besides promoting Scottish culture, poetry and cuisine. Member of the UK Parliament John Grogan will take part in this year's event.

About the event, British Ambassador to Mongolia Philip Malone said that this celebration has great significance to the people of Scotland and it is celebrated in many countries. Tradition and culture of Scotland has important role to strengthening relations between Mongolia and the United Kingdom.

Former Justice Minister D. Dorligiav has been accused of extorting $4 million from T.Ganbold while he was working as Prosecutor General. Ganbold is a director of Altan Dormod Mongol, which is a mining corporation.

D.Dorligjav has already admitted that the money was transferred through Golomt Bank into his younger brother D.Baatar’s account. They have been both been kept in custody at Detention Centre 461 since since 8 January.

As of the third quarter of 2018, the gross debt of the Mongolian Government stood at MNT 21.4 trillion. Last year, the country was spending one-eighth of budget expenditure on debt interests, which is estimated to be around one-thirteenth this year following the expected payment. The 2019 budget allocates MNT 856.6 billion on loan interests. The Government is expected to settle high-amount debts starting from 2021, including USD 500 million of Mazaalai bond in 2021 and USD 1 billion of Chinggis bond in 2022. Minister of Finance also noted that the Government is preventing high-amount debt repayments to coincide in a same year.

“Repaying large amounts of debt in one year depreciates the MNT rate, which is difficult to stregthen later on. Therefore, the ministry is making an effort in equalizing debt repayments for each years,” remarked Mr. Khurelbaatar.

This year, the Government of Mongolia is planning to raise MNT 1.2 trillion investment from foreign loans and aids, of which loans amount to MNT 1.1 trillion. 38 percent of the gross amount will be expended on oil production and improving energy supply, 20 percent on renovation of wastewater treatment plant and reduction of environmental pollution.

On the contrary, the budget was planned a MNT 1.9 trillion in deficit, which is 5.4 percent of GDP.

It is the first time the region's foreign trade volume has surpassed 100 billion yuan, according to the customs authorities of Hohhot, the regional capital.

In breakdown, the region's import volume rose 7.5 percent year on year to 65.57 billion yuan, while its export volume reached 37.87 billion yuan, a year-on-year growth of 14.4 percent.

Jiao Zhijun, a regional customs official, said Mongolia, Russia and Australia were the region's major trade partners last year, accounting for 56.2 percent of the region's foreign trade volume.

Jiao added that Inner Mongolia saw its foreign trade with countries participating in the Belt and Road Initiative reach 69.93 billion yuan in 2018, up 14.6 percent year on year.

Steel, organic chemicals, and mechanical and electrical products were among the region's major exports, while its major imports include coal, copper and iron ores.

Customs statistics show that a total of 2,853 inbound and outbound China-Europe freight trains passed through the ports of Erenhot and Manzhouli in 2018, up 34.2 percent.

The number of standard containers carried on the trains reached 193,000, up 29.1 percent, with products worth a total of 11.51 billion U.S. dollars, up 28.8 percent.

The figure is up almost 20 percent from the previous year, Nadmid Bayartsaikhan told local media.

The growth was attributed to the implementation of the three-year Extended Funding Facility of the International Monetary Fund (IMF) in Mongolia and higher commodity prices in international markets, Bayartsaikhan said.

The IMF program was approved in 2017, aiming to stabilize the economy and establish the basis for a more sustainable and inclusive growth.

Mongolia's foreign currency reserves have more than doubled since the start of the program, according to the Bank of Mongolia.

"But our country's gross external debts stands at 27.9 billion dollars, which indicates that the country is still under heavy external debt risks. So, we need to focus more on consistently increasing foreign currency reserves," Bayartsaikhan said, noting that the appropriate level of foreign exchange reserves is a guarantee of any country's financial independence.