Mongolia: 2012 Article IV Consultation and Third Post-Program Monitoring

November 29, 2012

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Mongolia: 2012 Article IV Consultation and Third Post-Program Monitoring, (USA: International Monetary Fund, 2012) accessed December 22, 2024

Summary

Mongolia has made impressive progress in developing its economy over the past ten years. Medium-term prospects are promising as mining output is projected to expand by more than 20 percent per annum, on average, over the next five years. However, the prospects for sustained, rapid and inclusive non-mineral growth depend on the implementation of the stability-oriented fiscal framework that has been adopted in the aftermath of the 2008/09 balance of payments (BOP) crisis. This framework was designed to dampen volatility, mitigate risks to economic and financial stability, and strengthen long-term natural resource management. The expansionary fiscal policy of the past year is causing double-digit inflation and BOP pressures. Public spending needs to be reined in, in order not to risk undermining stability and growth prospects, and in view of Mongolia’s vulnerability to a downturn in commodities exports.

Subject: Economic sectors, Expenditure, External debt, Fiscal policy, Mining sector, Public debt

Keywords: ADF grant financing, Asia and Pacific, Auction mechanism, Central Asia, CR, DBM borrowing, Deficit, Exchange rate, FDI-financed development, Foreign currency, GDP, GDP growth, Global, Government spending, ISCR, Market segmentation, Mining sector, Ratio rise, Rising government spending, U.S. dollar, US$

Publication Details

Pages:

66
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2012/320
Stock No:

1MNGEA2012003
ISBN:

9781475581485
ISSN:

1934-7685

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