Mongolia’s economy has been declining sharply due to COVID -19 outbreaks in China, according to World Economics. Also, global economic growth is projected to slow down since it did in 2009, the Organization for Economic Cooperation and Development (OECD) warned. At this time, there is an increasing need for prompt action by the Government and the Central Bank. The economy of Mongolia is highly dependent on the Chinese market. In particular, due to the proliferation of new types of coronaviruses, China has stopped business operations in some regions. This is causing an unprecedented stagnation in Mongolia’s market, assessed the World Economics. Indexes that show market expectations have been highlighted. The Sales Managers’ Indexes (SMI) fell to 35 units as of February 20, the lowest level of 39 months. It also noted that the business confidence index fell to the 38-month low and the sales growth index 59-month low. All indexes, except for the price index, have dropped below 50 units, according to World Economics. SMI provides the earliest monthly data on the speed and direction of economic activity in key growth areas of the world. The OECD reduced also the forecast for global growth this year from 2.9 percent to 2.4 percent. “In the future, as the situation worsens, large economies will need to take measures to support their health care and the economy,” it says. The World Trade Organization also said that COVID-19 might affect significantly on the global economy.

Published Date:2020-03-05