Experts warn of potential obstruction to export plan in 2019 www.zgm.mn
Analysts of the economist club of Bloomberg TV Mongolia warn of potential risk in meeting export and budget revenue plans driven by prices of key export commodities and border situation that could affect the economy in 2019.
Bloomberg economists suggested the need to immediately settle infrastructure issues to boost budget revenue. Within this frame, holding talks with the People’s Republic of China and reaching deals on improving the entry capacity at the border, stimulating transports and establishing the second major border checkpoint.
Economists are predicting coal price to fall by around USD 14 in 2019. Mongolia exported a total of 2.5 million tons of coal in November, which is the lowest amount in the last nine months. This decrease was mainly affected by China’s renovation at the border, causing temporary interruption for coal transport. Additionally, World Bank Group, Bloomberg and Bree released their outlook on coal price in 2019.
As for budget expense, the bloomberg experts highlighted the risk that half of investment expenditure would flow into import. Thus, analysts recommended to take preventive measures on import growth and set the implementation schedules apart to cut budget expense.
Published Date:2018-12-14