Publication: Mongolia Quarterly Economic Update, October 2011
Date
2011-10
ISSN
Published
2011-10
Author(s)
World Bank
Abstract
The economic rebound in recent quarters
has been stronger than expected and the economy is showing
signs of overheating. These signs are show up in rising
inflation, especially of those goods and services which are
in strong demand, but cannot easily be imported or whose
local supply cannot readily be increased to meet the growing
demand. Gross Domestic Product (GDP) growth reached 20.8
percent year-on-year (yoy) in Q3, following an outturn of
17.3 percent in Q2. Growth for the year as a whole will
likely hit 15 percent, if not more, up from 6.4 percent in
2010, and is being pushed by infrastructure spending as
Mongolia develops its vast mineral wealth. Inflation
continues its upward trend. The trade deficit is close to
record levels (US$ 1.4 bn in September using 12-month
rolling sums) driven by a surge in mining-related equipment
and fuel imports. Exports are growing strongly too, driven
by large coal shipments to China. The 2012 budget continues
this fiscal expansion and targets a 74 percent increase in
expenditures (mostly on wages and social transfers).
Citation
“World Bank. 2011. Mongolia Quarterly Economic Update, October 2011. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/27089 License: CC BY 3.0 IGO.”