According to the inflation expectation survey, households expected inflation to be 5.6 percent, business people 4.4 percent and financial experts anticipated it to be 7.8 percent in the first quarter. Over 57 percent of the participants and 50 percent of entrepreneurs believe that inflation is lower than the 8 percent target. The Bank of Mongolia (BoM) conducts the survey among entrepreneurs, financial analysts, and households quarterly based on international experiences. The National Statistics Office (NSO) announced that inflation stands at 5.6 percent in its latest report. The economic index has been increased comparably from a year earlier. The majority of citizens expect the economic conditions to be better within the next 12 months. In other words, the inflation expectation survey indicated that people have affirmative hope for the economy. Household finance is expected to rise in the upcoming year. However, the Mongolian tugrik rate against the U.S dollar has adversely affected the household’s living expenses. Mongolia’s economy grew by 5.1 percent last year. Mining and public service sectors were have mainly played a key role in growth. Despite the fact, coal export, and trade have been restricted at the beginning of this year. Coal concentrate which accounts for 40 percent of total mining revenue was sold at MNT 5,700 per tons, dropped by 20 percent year on year. Moreover, the Extended Fund Facility program (EFF) of the International Monetary Fund (IMF) will expire in May and the parliamentary election will be held in June. It is increasing economic risks and uncertainty. Asian Development Bank (ADB) and the World Bank announced to review Mongolia’s economic expectations. The government and related officials are predicting the economy to soar based on the research.

Published Date:2020-03-05