1 GAZPROM, MONGOLIA SIGN ENERGY MOU, PAVING PATH FOR POWER OF SIBERIA-2 WWW.OILPRICE.COM PUBLISHED:2025/08/27      2 MONGOLIA, US DISCUSS COOPERATION IN INVESTMENT, MINING, TOURISM, SPACE EXPLORATION WWW.MONTSAME.MN PUBLISHED:2025/08/27      3 MONGOLIA TO INCREASE COAL SUPPLY TO CHINA WWW.MONTSAME.MN PUBLISHED:2025/08/27      4 PM REAFFIRMS TRANSPARENCY IN BUDGET APPROVAL WWW.MONTSAME.MN PUBLISHED:2025/08/27      5 BUDGET 2026: SOCIAL INSURANCE AND WELFARE PENSIONS TO RISE BY 6% NEXT YEAR WWW.GOGO.MN PUBLISHED:2025/08/27      6 GAZPROM SIGNS MEMORANDUM OF COOPERATION WITH MONGOLIAN GOVT ON OIL AND GAS WWW.INTERFAX.COM PUBLISHED:2025/08/27      7 WATER-RELATED ACCIDENTS KILL 70 IN MONGOLIA THIS YEAR WWW.XINHUANET.COM PUBLISHED:2025/08/27      8 FITCH AFFIRMS MONGOLIAN MINING AT 'B+'; OUTLOOK STABLE WWW.FITCHRATINGS.COM  PUBLISHED:2025/08/26      9 20-DAY ODD-EVEN LICENSE PLATE RESTRICTION TO BEGIN ON AUGUST 27 WWW.GOGO.MN PUBLISHED:2025/08/26      10 WHY CHINESE INNER MONGOLIA BAOTOU STEEL UNION'S 40% PROFIT SURGE SIGNALS A STRONG BUY OPPORTUNITY WWW.AINVEST.COM  PUBLISHED:2025/08/26      ТӨГРӨГ НУУРЫН БҮЛЭГ ОРДЫГ ТӨРД БУЦААН АВАХААР ШИЙДВЭРЛЭЛЭЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2025/08/27     “ГАЗПРОМ”-ТОЙ ГАЗРЫН ТОСНЫ САЛБАРТ ХАМТРАН АЖИЛЛАНА WWW.EAGLE.MN НИЙТЭЛСЭН:2025/08/27     SXCOAL-ТАЙ ХАМТАРСНААР ХЭРЭГЛЭГЧДЭД ХАМГИЙН БОЛОМЖИТ ХУВИЛБАРЫГ САНАЛ БОЛГОХ БОЛОМЖТОЙ WWW.ITOIM.MN НИЙТЭЛСЭН:2025/08/27     "РИО ТИНТО"-ТОЙ ХИЙХ АРБИТРЫН МАРГААНД ЗГ-ЫГ Н.МЯГМАРААР АХЛУУЛСАН АЖЛЫН ХЭСЭГ ТӨЛӨӨЛНӨ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/08/27     ЭМЭЭЛТ ЭКО АЖ ҮЙЛДВЭРИЙН ПАРКИЙН ДЦС-ЫН ГЭРЭЭНД ГАРЫН ҮСЭГ ЗУРЖЭЭ WWW.NEWS.MN НИЙТЭЛСЭН:2025/08/27     "ЦЕМЕНТ ШОХОЙ" ХК-ИЙГ ТҮШИГЛЭН АЖ ҮЙЛДВЭРИЙН ПАРК БАЙГУУЛАХ САНАМЖ БИЧИГТ ГАРЫН ҮСЭГ ЗУРЛАА WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/08/27     ЭНХТАЙВАНЫ ГҮҮРИЙГ ШИНЭЧИЛЖ ЗАССАНААР 15-20 ЖИЛЭЭР НАСЖИЛТ НЭМЭГДЭНЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/08/27     ХЯТАДЫН ИМПОРТЫН НҮҮРСНИЙ 48 ХУВИЙГ МОНГОЛ УЛС, 29 ХУВИЙГ ОХУ-ААС НИЙЛҮҮЛЖЭЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2025/08/26     “ЦАЙРТ МИНЕРАЛ” КОМПАНИЙГ "ЭРДЭНЭТ"-ИЙГ ТҮШИГЛЭН БАЙГУУЛАХ ЗЭС ХАЙЛУУЛАХ ҮЙЛДВЭРИЙН СОНГОН ШАЛГАРУУЛАЛТАД ОРОЛЦУУЛАХААР УРЬЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/08/26     С.БЯМБАЦОГТ: ЗАСГИЙН ГАЗАР ОЮУ ТОЛГОЙН АСУУДЛЫН ЗАНГИЛААГ ТАЙЛНА WWW.ITOIM.MN НИЙТЭЛСЭН:2025/08/26    

Mongolian Economy Braces For China Chill www.mongoliaweekly.org

With China recording its slowest growth in decades, its economic chill threatens to give neighboring Mongolia a serious case of the flu. Resource-rich but undiversified Mongolian economy depends on China for over 90% of exports and could see growth slashed as Chinese demand weakens.
Steel making in China
Mongolia’s impressive GDP growth - hitting 7.9% in Q1 2023 - has been built on supplying coal, copper and other minerals to its giant neighbor.
But with China’s property sector slowing down amid a brewing debt crisis, Mongolian commodity exporters are facing challenges from lower demand and prices. State revenues and foreign reserves are set to take a hit.
And it’s not just commodities. Chinese tourism and investment are important economic sources for Mongolia, but they also pose some challenges and uncertainties. With China’s economy at its most feeble since 1976, we can expect sharp drops in both.
Mongolian firms heavily reliant on Chinese visitors and investments will have challenging times.
The anticipated casino bill, which could have significantly attracted Chinese tourists, is currently pending approval.
There are some silver linings. Declining global commodity prices will ease inflation pressures at home. And reduced Chinese demand could open trade opportunities with third countries. But these positives pale compared to the loss of Mongolia’s main growth engine.
Mongolia’s policymakers have a battle ahead. Fiscal spending may help soften the blow in the short-term, but risks debt concerns.
Maintaining high interest rates seem inevitable to protect the tugrik currency as foreign reserves start falling. Using its sovereign wealth fund could provide breathing room, but rainy day savings only go so far.
In forecasting just 4.5% economic growth in Mongolia this year, the IMF has already baked in significant downside risks from China’s downturn.
But further deceleration may be in store if Beijing fails to course correct.
Mongolia’s lack of economic diversification means it has little insulation from the cold winds blowing from its neighbor.
With prudent policies, Ulaanbaatar can hope to emerge without catching pneumonia. But China’s massive economy sneezing inevitably means its small, export-reliant neighbor Mongolia will get sick. There is no vaccine for this economic flu yet.
BY Amar Adiya


Published Date:2023-08-16