1 NORD STREAM: SWEDEN FINDS NEW LEAK IN RUSSIAN GAS PIPELINE WWW.BBC.COM PUBLISHED:2022/09/29      2 IS A GLOBAL RECESSION COMING? MORE EXPERTS ARE RAISING THE ALARM WWW.ALJAZEERA.COM PUBLISHED:2022/09/29      3 TMK COMPLETES INITIAL DRILLING AT MONGOLIAN CBM PROJECT WWW.NATURALGASWORLD.COM  PUBLISHED:2022/09/29      4 PRESIDENT U.KHURELSUKH GETS ACQUAINTED WITH HARVESTING PROGRESS IN AGRARIAN REGIONS WWW.MONTSAME.MN PUBLISHED:2022/09/29      5 ESG, GEOPOLITICS RANKED TOP RISKS FOR MINING COMPANIES, EY SURVEY SHOWS WWW.MINING.COM PUBLISHED:2022/09/29      6 DEPOSITS IN DOMESTIC CURRENCY DECREASED BY 3.5 PERCENT WWW.MONTSAME.MN PUBLISHED:2022/09/29      7 TECHNICAL SUPPORT TO PREPARE FACTUAL EVIDENCE FOR THE ESTABLISHMENT OF A FULLY FUNCTIONAL YOUTH DEVELOPMENT CENTRE WWW.MONGOLIA.UNFPA.ORG PUBLISHED:2022/09/29      8 SOUTH KOREAN COMPANY TO BUILD COMBINED HEAT AND POWER PLANT IN MONGOLIA WWW.AKIPRESS.COM PUBLISHED:2022/09/29      9 WORKSHOP BOLSTERS MONGOLIAN SANCTIONS COMPLIANCE AND NONPROLIFERATION EFFORTS WWW.MN.USEMBASSY.GOV  PUBLISHED:2022/09/28      10 ELIXIR ENERGY COAL BED METHANE PILOT PROJECT IN MONGOLIA ON TRACK; FIRST WELL COMPLETE AND A SECOND ON ITS WAY WWW.PROACTIVEINVESTORS.COM.AU  PUBLISHED:2022/09/28      БОДЛОГЫН ХҮҮНИЙ НӨЛӨӨ: ТӨГРӨГИЙН ХАДГАЛАМЖИЙН ХҮҮ 10-12 ХУВЬ БОЛЖ ӨСЧ ЭХЭЛЛЭЭ WWW.NEWS.MN НИЙТЭЛСЭН:2022/09/29     SXCOAL: БНХАУ-ЫН ТАЛААС ЭРЭЛТ ИХ БАЙГАА НЬ МОНГОЛЫН КОКСЖИХ НҮҮРСНИЙ ХАНШ ӨНДӨР ХЭВЭЭР БАЙХАД НӨЛӨӨЛНӨ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2022/09/29     ТӨГРӨГИЙН АМ.ДОЛЛАРТОЙ ХАРЬЦАХ САРЫН ДУНДАЖ ХАНШ 32.69-336.81 ТӨГРӨГӨӨР СУЛРАВ WWW.MONTSAME.MN  НИЙТЭЛСЭН:2022/09/29     MӨНГӨНИЙ НИЙЛҮҮЛЭЛТ 26.9 ИХ НАЯД ТӨГРӨГ БОЛЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2022/09/29     ТӨСӨВ: ИРЭХ ОНД НИЙТ ОРЛОГО 19.6 ИХ НАЯД, ЗАРЛАГА 20.3 ИХ НАЯД ТӨГРӨГ БАЙХААР ТООЦЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2022/09/29     НҮҮРСНИЙ ЭКСПОРТ ӨСЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2022/09/29     Ч.ХҮРЭЛБААТАР: ГАДААД ВАЛЮТЫН НӨӨЦ 2 ТЭРБУМ АМ.ДОЛЛАРООР БУУРСАН WWW.EAGLE.MN НИЙТЭЛСЭН:2022/09/29     МОНГОЛ УЛС 2021 ОНД 139 ТЭРБУМ ТӨГРӨГИЙН АРХИ, СОГТУУРУУЛАХ УНДААГ ГАДНААС ХУДАЛДАН АВЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2022/09/29     ДЭЛХИЙН БАНК: МОНГОЛ УЛС МАКРО ЭДИЙН ЗАСГИЙН ТОГТВОРТОЙ БАЙДЛAA ХАДГАЛАХ ШААРДЛАГА НЭМЭГДЭЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2022/09/28     АЛТАНБУЛАГ БООМТООР ОРЖ ИРСЭН ОХУ-ЫН ИРГЭДИЙН ТОО 450 ХУВИАР ӨСӨӨД БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2022/09/28    

Sluggish Growth, Soaring Inflation to Persist in Mongolia in 2022 www.adb.org

ULAANBAATAR, MONGOLIA (21 September 2022) — Economic growth is forecast to remain low in Mongolia this year before picking up next year, assuming external risks are mitigated and border issues with the People’s Republic of China (PRC) resolved in 2023, according to a new report by the Asian Development Bank (ADB). Meanwhile, inflation and the current account deficit are expected to outpace earlier projections.
Growth is forecast at 1.7% this year, down from an April projection of 2.3%, while the forecast for next year has been lowered to 4.9% from 5.6%, according to Asian Development Outlook (ADO) 2022 Update, released today. This is due to prolonged border restrictions, deterioration of purchasing power under persistently high inflation, higher borrowing costs, a likely decline in the availability of credit, and a continuation of monetary tightening.
“Despite initial signs of recovery, the economy’s near-term growth prospects remain uneven,” said ADB Country Director for Mongolia Pavit Ramachandran. “A combination of persistently high inflation and a large current account deficit creates a pressing need for achieving better macroeconomic balance while focusing on medium-term structural reforms.”
The prolonged restrictions at the border with the PRC as well as the Russian invasion of Ukraine have disrupted trade, reduced essential imports, increased import prices, escalated price increases, and dampened industrial sectors and business sentiment. Contraction continued in the mining, manufacturing, construction, and transportation sectors, and recovery in industry is likely to take time. Still, the lifting of pandemic-related restrictions since February 2022 has revived domestic demand, assisted by accommodative monetary and fiscal policies.
Inflation escalated and remained above the central bank’s target for the past 16 consecutive months. The surge in inflation will continue, mainly due to persistent supply disruptions, rising transportation costs, exchange rate depreciation and its pass-through impacts, and higher prices for food, fuel, and imported durables. The current account deficit will exceed ADO 2022 forecasts in both years, mainly because of higher imports, lower growth expected in the PRC, and continued downward corrections to exporting commodity prices.
Downside risks to the outlook are any new restrictions at major trade portals with the PRC, a decline in mineral commodity prices, negative spillovers from the global slowdown, aggressive monetary tightening, or rising balance sheet risks in the domestic financial sector.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.


Published Date:2022-09-21