World Bank shows optimism for Mongolia's economy supported by coal sector

World Bank in its Mongolia Economic Outlook has an optimistic viewpoint for the coming years, it has forecasted the economy to grow at 5.5 percent in 2018, 6.6 percent in 2019 and 6.2 percent in 2020.

World Bank in its Mongolia Economic Outlook has an optimistic viewpoint for the coming years, it has forecasted the economy to grow at 5.5 percent in 2018, 6.6 percent in 2019 and 6.2 percent in 2020.

The economy grew at just 1.2 percent in 2016 and has been recovering at a strong pace ever since supported by coal sector and a staggering increase in copper production which resulted in more foreign investment.

The good economic performance had a significant positive impact on public finances and led to a moderate reduction in government debt.

Although the economy is growing at a strong pace, risks remain. The growth is heavily dependent on global commodity prices; growth is riding on physical capital accumulation with a limited contribution of total factor productivity.

World Bank also says that even as public investment in Mongolia is highest in the region, this investment is spent inefficiently.