Service sector growth may hinder 2020 economic outlook www.zgm.mn
International and domestic freight, one of the key drivers for economic growth, totaled 69 million tons in 2019. During the same period, Mongolia received 577,200 tourists, up 10.2 percent from a year earlier. However, the inflow of visitors and service sector revenue might decline in the first quarter of this year as the deadly virus (2019-nCoV) spreads around the world. Growth in the service sector is expected to grow along with the mining industry, according to the official at the central bank. Specifically, freight and retail sector growth have been dominating in the service sector. As of the third quarter of 2019, Mongolia’s economic growth reached 6.3 percent, mainly contributed by the mining, service, and construction sectors. The risk of an expected decrease in the service sector might have a negative effect on the economic outlook of 2020. The Asian Development Bank predicted the country’s economic growth at 6.3 percent this year.
Published Date:2020-01-30