Shiilegmaa, AltantsetsegGombosuren, KhandtsoojBatsuuri, Davaadalai2014-01-282014-01-282013-11https://hdl.handle.net/10986/16643In 2013, the Mongolian economy is expected to maintain double digit growth due to the start of copper production of the Oyu Tolgoi (OT) mine and expansionary economic policies. Yet, the economy is facing a significant challenge from growing balance of payments pressures as the foreign direct investment (FDI) inflow declines and the mineral exports remain weak. A substantial balance of payments imbalance stems from a weakening minerals market but also largely reflects the consequences of pro-cyclical economic management over the last two years. Mongolia may also face a downside risk from an uncertain global economic environment and further dampening of minerals market. Macro-economic and financial vulnerabilities are growing due to continuous expansionary fiscal and monetary policies reflected in significant off-budget spending and rapid credit growth. The government took a series of positive measures in recent months to address the challenges including the adoption of the new investment law, announcement of a fiscal consolidation plan, and subsequent amendment of the 2013 budget to tighten budget spending. Yet, further efforts are needed to shift the growth-oriented economic policies toward economic stability and rebuilding macro-economic policy buffers, in light of uncertain prospects in the external environment and the balance of payments situation.en-USCC BY 3.0 IGOACCOUNTINGADVANCED ECONOMIESAGGREGATE DEMANDASSET PRICESBALANCE OF PAYMENTSBALANCE SHEETBALANCE SHEETSBANK ACCOUNTBANK CREDITSBANK DEPOSITBANK DEPOSITSBANK LOANBANK LOANSBANKING SECTORBANKING SYSTEMBENEFICIARIESBLACK MARKETBOND INVESTMENTBOND ISSUANCEBOND STOCKBOND YIELDSBONDSBORROWERSBORROWING COSTSBUDGETBUDGET DEFICITBUFFERSCAPITAL ADEQUACYCAPITAL FLOWSCAPITAL FORMATIONCAPITAL INFLOWCAPITAL INFLOWSCAPITAL OUTFLOWSCENTRAL BANKCENTRAL BANK BILLSCHECKCOMMERCIAL BANKSCOMMERCIAL LOANSCOMMERCIAL TERMSCOMMODITY MARKETSCOMMODITY PRICESCONSOLIDATIONCONSUMER PRICE INDEXCONTRACTSCORE INFLATIONCREDIT EXPANSIONSCREDIT GROWTHCREDIT RATINGCREDIT RISKCREDIT RISKSCREDITORSCURRENCIESCURRENCY COMPOSITIONCURRENCY DEPRECIATIONCURRENT ACCOUNTCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSDEBT FINANCINGDEBT ISSUANCEDEBT LEVELDEBT MANAGEMENTDEFICIT FINANCINGDEPOSITDEPOSIT INSURANCEDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDISBURSEMENTDISBURSEMENTSDOMESTIC BONDDOMESTIC CONSUMPTIONDOMESTIC CREDITDOMESTIC DEBTDOMESTIC GOVERNMENT BONDSECONOMIC DEVELOPMENTSECONOMIC ENVIRONMENTECONOMIC GROWTHECONOMIC POLICIESECONOMIC POLICYECONOMIC STABILITYEMERGING ECONOMIESEMERGING MARKETSEXCESS LIQUIDITYEXCHANGEEXCHANGE RATEEXCHANGE RATE MOVEMENTEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT VOLUMEEXPORTERSEXTERNAL BORROWINGEXTERNAL DEBTFEDERAL RESERVEFINANCEFINANCIAL CRISISFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL RISKSFINANCIAL STABILITYFINANCIAL SUPPORTFINANCIAL VULNERABILITIESFISCAL BURDENFISCAL DEFICITFISCAL DEFICITSFISCAL DISCIPLINEFISCAL POLICIESFISCAL POLICYFIXED INVESTMENTFOOD PRICESFOREIGN CAPITALFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN INVESTMENTFOREIGN LOANFOREIGN LOANSFOREIGN PORTFOLIO INVESTMENTFUTUREGLOBAL ECONOMYGLOBAL TRADEGOODGOODSGOVERNMENT BONDGOVERNMENT EXPENDITUREGOVERNMENT EXPENDITURESGOVERNMENT REVENUEGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGUARANTEEHOUSEHOLD INCOMEHUMAN DEVELOPMENTIMBALANCEIMBALANCESIMPORTIMPORT DEMANDINCOME LEVELINFLATIONINFLATION RATEINFLATIONARY PRESSUREINFLATIONARY PRESSURESINSURANCE CORPORATIONINTERESTINTEREST PAYMENTSINTEREST RATEINTEREST RATESINTERNATIONAL BORROWINGINTERNATIONAL RESERVEINTERNATIONAL STANDARDINVESTMENTINVESTMENT CAPITALINVESTMENT CLIMATEINVESTMENT PROJECTSINVESTMENT REGIMEINVESTMENTSINVESTORSLABOR FORCELABOR MARKETLENDINGLIABILITIESLIABILITYLIQUIDITYLIVING STANDARDSLOANLOANSLOCAL CURRENCIESLOCAL CURRENCYLOOSE MONETARY POLICYMACRO-ECONOMIC POLICIESMACRO-ECONOMIC POLICYMARKET CONDITIONMARKETSMONETARY AUTHORITIESMONETARY POLICIESMONETARY POLICYMORAL HAZARDMORTGAGEMORTGAGESNON-PERFORMING LOANNPLOPEN MARKETPORTFOLIOPORTFOLIO FLOWSPOTENTIAL INVESTORSPOVERTYPRICE CHANGESPRIVATE CREDITPRIVATE CREDIT GROWTHPRIVATE INVESTMENTPRIVATE LOANPRIVATE SECTOR CREDITPRIVATE SECTOR DEBTPROPERTYPRUDENTIAL REGULATIONSPUBLIC DEBTPUBLIC DEBT MANAGEMENTPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC SPENDINGREGULATORY FORBEARANCEREPAYMENTRESERVERESERVE MONEYRESERVESRETURNREVENUEREVENUESRISK FACTORSRISK PROFILESAVINGS BANKSHARESHARE OF INVESTMENTSHORT-TERM BORROWINGSHORT-TERM CAPITALSHORT-TERM DEPOSITSSHORTFALLSLOWDOWNSOVEREIGN BONDSOVEREIGN BONDSSTATE BANKSTOCKSTOCK MARKETSUPPLYSUPPLY CAPACITYSUPPLY SIDETAXTAXESTIME DEPOSITTIME DEPOSITSTRADE DEFICITTRANSACTIONTRANSACTIONSTRANSPARENCYWITHDRAWALWITHDRAWALSWorld Bank10.1596/16643