Mongolia’s economy grows 7.3% in H1 www.zgm.mn
In the first half of 2019, by preliminary estimation of production approach, the GDP of Mongolia at 2010 constant price reached MNT 8.6 trillion, increased by MNT 590.5 billion or 7.3 percent compared to the same period of the previous year. This increase was mainly due to increases in the industry, construction sector by MNT 230.7 billion, mining and quarrying sector by 211.0 billion, and service sector by MNT 248.2 billion.
The country’s economy expanded 8.6 percent year-onyear in the first quarter of this year, which was the strongest GDP growth rate since the third quarter of 2014 when the figure stood at 9.1 percent.
The World Bank has predicted that Mongolia’s economy would grow by 7.2 percent in 2019 and 6.9 percent in 2020, but the Bank of Mongolia (BoM) predicted GDP growth at 6.9 percent in 2019.
Total equilibrated revenue and grants of the General government budget amounted to MNT 6.0 trillion and total expenditure and net lending amounted to MNT 5.5 trillion, resulting a surplus of MNT 535.3 billion in the equilibrated balance.
Current account deficit reached USD 683.6 million, which was mainly due to USD 898.3 million deficit in services account and USD 754.8 million deficit in primary account.
In addition, CPI rose 4.8 percent from the end of the previous year due to increases in prices for food and non-alcoholic beverages group by 13.9 percent, meat and meat products by 38.7 percent and clothing, cloth and footwear each group by 4.0 percent in July 2019.
The Asian Development Bank predicted inflation at 8.5 percent in 2019. It also assumed growth in domestic demand as a result of increased expenditures and the depreciation of the MNT and fuel prices in the late half of 2018 as main indicators to the inflation rate.