Yesterday (14 September), two more people were discharged from the National Centre for Communicative Diseases after having fully recovered from the coronavirus infection that has killed over 928,000 people in the world.

As of today, Mongolia has reported 310 confirmed cases of coronavirus; 300 of them have fully recovered. Currently, 10 patients suffering from the coronavirus infection are under treatment at the NCCD; four of them are in a critical state.

Mongolia is one of few countries that have no local transmissions of COVID-19.

Mongolia’s frontier market and vast mineral reserves represent potentially lucrative opportunities for investors, but a high-risk macroeconomic environment and lack of input from stakeholders during rulemaking warrant caution. Mongolia’s economic model of exporting minerals and importing most other goods means the government imposes few market-access barriers. Investors also face few investment restrictions in Mongolia, enjoying mostly unfettered access to the market. Franchises such as gyms, fast food, and convenience stores have outperformed expectations, suggesting investors can bring successful international business models to Mongolia’s services sector. Mongolia’s cashmere and agricultural sectors also show strong promise. However, investing into politically sensitive sectors of the Mongolian economy – such as mining – carries higher risk.

A COVID-19-related ban on entry of foreigners into Mongolia and prohibition on passenger flights will complicate investment decisions for as long as these measures remain in effect. Hazardous air pollution during the winter may hamper efforts to attract top talent, although the government made substantial progress in 2019 addressing it.

Economists predict a one-percent contraction in GDP in 2020 as COVID-19’s effects have substantially hurt Mongolia’s services sector, which accounts for 39 percent of GDP – assuming a V-shaped economic rebound in the second half of 2020. Despite experiencing declines, mining and agriculture have been relatively resilient in the face of the pandemic, meaning Mongolia’s broader economy should emerge less damaged than some of its peers. Public debt is projected to reach 77 percent of GDP in 2020, and Mongolia faces a series of sovereign debt payments to external commercial creditors beginning in 2021 that may create balance-of-payments stress. Although Mongolia implemented policy measures that substantially reduced economic vulnerabilities under a three-year International Monetary Fund (IMF) program, the program unsuccessfully ended in May 2020 after the government failed to address IMF macroprudential concerns regarding the banking sector.

Mongolia has committed to implementing the U.S.-Mongolia Agreement on Transparency in Matters Related to International Trade and Investment (known as the Transparency Agreement), which requires a public-comment period before new regulations become final. It also requires ministries to respond to public comments or factor them into final rules. Mongolia is three years behind implementing its Transparency Agreement public-notice and comment commitments, raising questions about the seriousness of the government’s efforts to promote foreign investment in Mongolia.

Mongolia’s judicial system has shown signs of offering investors protection, but 2019 reforms that simplified the removal of judges, prosecutors, and anti-corruption officials raised questions regarding judicial independence. In November 2019 parliament adopted constitutional amendments designed in part to address these concerns. Investors cite long delays in reaching court judgments in business disputes, followed by similarly long delays in enforcing these decisions. There are also reports of long delays by administrative inspection bodies, such as the tax authority, which in the past have failed to act on politically sensitive decisions. Businesses note a substantial regulatory burden at the regional level as well, although the government’s “One-Stop Shop for Investors” has helped investors navigate this process.

Please see the full article on https://mn.usembassy.gov/2020-investment-climate-statement-mongolia/

Mongolia reported that two more people had recovered from COVID-19 in its latest count, taking the total number of recoveries in the country to 300, the country's National Center for Communicable Diseases said in a statement on Monday.

The center said that 11 COVID-19 patients are now being treated in Mongolia, four of them in severe condition.

All the 311 confirmed cases in Mongolia were imported, and no local transmissions or deaths have been reported in the country so far. Enditem

In late August, the Wealth Creators Support Association (WCSA) of Mongolia and Mongolian Artisan Cheesemakers Union (MACU) LLC signed a memorandum of cooperation to jointly build 100 cheese plants across the country with the aim of creating new jobs, increasing the value of milk supplied from herders, and bringing the dairy product to international markets, Montsame reported.

WCSA President Ch.Dalaibayar said the 100 cheese factory project also aims to satisfy domestic cheese demand and export the surplus.

MACU Executive Director Michael Morrow said the project is expected to contribute to Mongolia’s development and is especially benefitial for herders. Domestic milk processing and cheese production will not only play an important role in increasing income of herder households, but also encourage sustainable growth, he said.

The Mongolian government on Monday decided to extend the country's heightened state of readiness until the end of October amid the COVID-19 pandemic.

"Today, the government decided to extend the country's heightened state of readiness until the end of next month. The extension is part of efforts to prevent the spread of the coronavirus," Tseden-Ish Ganzorig, head of the government's press office, told a news conference.

During the period of the heightened state of readiness, Mongolia will not open its borders and not allow in commercial international flights, said Ganzorig.

However, as no local transmissions of the virus have been reported in Mongolia, the government decided to resume normal business activities and mass gatherings such as sports events and cultural activities starting from Wednesday, he said.

The Asian country has confirmed 311 COVID-19 cases so far, with no local transmissions or deaths.

It entered its heightened state of readiness on Feb. 12, with measures including the suspension of international passenger flights.

Ulaanbaatar/MONTSAME/. According to the preliminary results in the first eight months of 2020, the total revenue of the general government budget was MNT 6.1 trillion. The equilibrated revenue of the general government budget was MNT 5.7 trillion and 93.7% of the total revenue of the general government budget. On the other hand, the total expenditure and net lending was MNT 8.3 trillion in the first eight months of 2020, resulting in a deficit of MNT 2.7 trillion in the equilibrated balance.

In August 2020, the total equilibrated revenue and grants of the general government budget were MNT 799.1 billion, decreased by MNT 0.8 billion or 0.8%, the total expenditure, and net lending was MNT 990.1 billion, decreased by MNT 77.5 billion or 7.3% compared to the previous month.

In August 2020, the equilibrated balance of the general government budget was in deficit of 190.9 billion, decreased by MNT 76.7 billion or 28.7% compared to the previous month.

The General government budget revenue was comprised of 84.8% of tax revenue, 8.9% of non-tax revenue, 6.0% of the future heritage fund, and 0.3% of the stabilization fund.

In the first eight months of 2020, tax revenue reached MNT 5.2 trillion, decreased by MNT 1.1 trillion or 17.4% compared to the same period of the previous year. This decrease was mainly due to MNT 375.5 billion or 22.7% decrease in income tax revenue, MNT 245.2 billion or 19.5% decrease in social security revenue, MNT 173.0 billion or 28.9% decrease in other taxes revenue MNT 165.8 billion or 10.9% decrease in value-added tax revenue, MNT 80.6 billion or 13.8% decrease in excise tax revenue and MNT 38.9 billion or 7.6% decrease in foreign activity revenue.

In the first eight months of 2020, 24.7% of the total tax revenue was accumulated from income tax, 19.7% from social security contributions, 26.3% from value-added tax, 9.8% from excise taxes, 9.2% from foreign activities and 10.3% from other taxes.

In the first eight months of 2020, value-added tax revenue from by increased 1.9 percentage points, foreign activity revenues increased by 1.0 percentage points and excise taxes revenue increased by 0.4 percentage points, while other taxes revenue decreased by 1.1 percentage points, income taxes revenue decreased by 1.7 percentage points and social security revenue decreased by 0.5 percentage points compared to the same period of the previous year.

In the first eight months of 2020, general government budget expenditure and net lending was MNT 8.4 trillion, increased by MNT 2.0 trillion or 32.1% compared to the same period of the previous year. This increase was primarily affected MNT 1.5 trillion or 30.1% increase in current expenditure and MNT 629.6 billion or 55.9% increase in capital expenditure, though net lending decreased by MNT 124.8 billion or 92.9%, compared to the same period of the previous year.

In the current expenditure, 42.5% was expenditure on goods and services, 46.4% was current transfers, 7.3% was interest payment and 3.8% was subsidies. In the first eight months of 2020, the capital expenditure amounted to MNT 1.8 trillion, increased by MNT 629.6 billion or 55.9% compared to the same period of the previous year.

The increase in the capital expenditure was mainly resulted from MNT 274.0 billion or 33.2% increase in construction expenditure, MNT 165.2 billion or 93.4% increase in other capital expenditure, MNT 183.3 billion or 4.5 times increase in equipment expenses and MNT 3.6 billion or 5.9% increase in capital repairs expenditure compared to the same period of the previous year.

Source: National Statistics Office

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According to information presented by the country's National Statistics Office (NSO) on Thursday, September 10, Mongolia's total overseas trade dropped 16.3 percent year on year in the first eight months of this year.

Mongolia's overseas trade reached USD7.9 billion in the January-August period, the NSO stated.

The decline in foreign trade is directly linked to preventive procedures to control the spread of coronavirus, according to specialists of the numerical agency.

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A record number of Mongolian coal freight trucks has entered to China at once in August. In total, 2,233 heavy-duty trucks laden with coal entered China from Mongolia via four border points, namely Gashuunsukhait, Shiveekhuren, Bulgan and Khangi, hitting an all-time high.

This happened as a temporary regulation called theGreen Gateway came into effect on Aug. 1, which aims to boost trade and economic cooperation between China and Mongolia amid the COVID-19 pandemic.

Prior to the introduction of the regulation, an average of 500 to 1,000 coal trucks per day entered China from Mongolia, according to the Mongolian Ministry of Mining and Heavy Industry.

Mongolia exported a total of 11.2 million tons of coal in the first seven months of this year, a decrease of 46.4 percent compared to the same period last year, official data showed. The sharp decrease in coal exports was largely due to restrictive measures to contain the spread of COVID-19.

Mongolia is a landlocked country with rich natural resources, among which coal is the main export commodity

China attracted 84.1 billion yuan ($12.3 billion) in foreign direct investment (FDI) last month – 18.7 percent more than a year earlier – as the world’s second-largest economy continues to rebound after the Covid-19 outbreak.

August marked the fifth consecutive month of FDI growth, according to data from China’s Commerce Ministry. In the first eight months of this year, investment inflows jumped 2.6 percent to 619.8 billion yuan.

China remains a hot investment destination as it is one of only a few nations that managed to avoid falling into recession after the coronavirus outbreak rattled the global economy. After a record slump in the first quarter, China’s gross domestic product (GDP) beat forecasts in June, rising 3.2 percent.

Beijing has been stepping up its efforts to attract global investors. On Friday, senior Chinese officials said that the country is betting on the fast-growing service sector to support investors. They also revealed that the Chinese capital is looking to become a “national comprehensive demonstration zone” as it implements a range of measures, including facilitating cross-border flows of capital, support for overseas securities and futures firms, and encouraging foreign companies to participate in stock and bond trading.

“Foreign investors have expressed a strong wish to get into the telecommunications sector,” China’s Vice-Commerce Minister Wang Shouwen said on Friday, as quoted by CGTN. “Now the plan will allow foreign companies to invest in virtual private networks (VPNs), with a proportion of foreign shares not exceeding 50 percent. Overseas telecommunications providers can set up joint ventures to provide such services for foreign enterprises in Beijing.”

Investment inflows into China continue to grow despite rows with the US on multiple fronts. In addition to pressuring Chinese businesses on its own territory, the Trump administration has been attempting to persuade American companies to ditch China. While businesses are concerned about bitter trade tensions between the world’s two leading economies, US enterprises are reluctant to pack up their things, a recent survey by the American Chamber of Commerce (AmCham) in Shanghai showed. According to the poll, over 78 percent of companies do not want to change their investment allocations. As for moving out production, the survey found that just four percent of firms would relocate some capacities to the US, while 70 percent have no such plans.