ADB says Mongolia poised for significant economic growth this year
Date
9/25/2024 5:29:25 AM
(MENAFN) The Asian Development bank (ADB) announced on Wednesday that Mongolia is poised for significant economic growth this year, driven by robust external demand, rising consumption, and increased government spending. According to the ADB's latest Asian Development Outlook (ADO) for September 2024, the bank has revised its growth forecast for Mongolia’s gross domestic product (GDP) to 5.5 percent for 2024, a notable increase from the previous projection of 4.1 percent made in April. Furthermore, the growth is expected to accelerate to 6.0 percent in 2025, aligning with earlier forecasts.
This optimistic outlook is largely attributed to expansions in key sectors, particularly services and industry, with mining playing a pivotal role. The anticipated recovery in agriculture, which faced a sharp decline in the first quarter of 2024, combined with increased government expenditures, is expected to provide a further boost to economic activity in the coming year. Shannon Cowlin, the ADB's country director for Mongolia, emphasized the importance of leveraging this economic upswing to establish safeguards against potential future shocks and to make strategic investments that support sustainable and diversified growth.
Mongolia's economy has demonstrated resilience this year, with a significant contribution from higher-than-expected mining output. The surge in coal exports, which rose by 37.6 percent year-on-year in the first half of 2024, has not only enhanced government revenues but also stimulated growth in related sectors, especially goods transportation. Additionally, rising domestic demand, underpinned by moderating inflation and increased public sector wages, has further sustained the country’s economic expansion, as highlighted by the ADB.
Despite the positive outlook, the ADB also cautioned about potential risks that could impact Mongolia's economic performance. These include possible delays in the output expansion of the Oyu Tolgoi copper-gold mining project located in the southern province of Umnugovi, as well as disruptions in prices and supply chains caused by geopolitical tensions and climate-related challenges. The bank's warning underscores the need for careful monitoring of these factors to ensure continued economic growth and stability.
MENAFN25092024000045015839ID1108713069
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.