However, the deficit amount is lower than the previous year’s USD 200 million. Income for the goods and services of exports has increased by USD 330 million compared to the previous year. Also, services which include travel, tourism, transportation, and paid services decreased by USD 64 million. As a result, current account deficit decreased by USD 183 million but it remains high.

“Current account deficit can be balanced by foreign direct investment, especially, Oyu Tolgoi project and long-term soft loans under the Extended Funding Facility,” said Head of Research and Statistics Department of Central Bank. The deficit is expected to decline slightly as a result.

In terms of the financial account, foreign direct investment totalled USD 1.1 billion since the beginning of 2019, decreasing by USD 44 million from the previous year. Mining mega projects account for more than 90 percent of direct investment.

“The vulnerability associated with external financing has not diminished, and the high current account deficit might affect negatively on investors' confidence and attitudes,” Fitch agency warned about Mongolia's credit rating in July.