Inflation could reach 20 percent
The World Bank says Mongolia’s economy kept growing in 2011, according to a report in the newspaper Uls Turiin Toim. Growth was measured at 9.9 percent at the end of March, and at 17.3 percent at the end of June. The mining and industrial sectors have grown 12.9 percent.
But those rosy numbers mask some problems. Increased government revenues could lead to increased government spending, which would lead to more inflation.
The World Bank is warning that Mongolia’s reliance on trade with China, coupled with high rates of inflation, could overheat the economy. The World Bank says inflation could reach 20 percent by the end of the year.
But those rosy numbers mask some problems. Increased government revenues could lead to increased government spending, which would lead to more inflation.
The World Bank is warning that Mongolia’s reliance on trade with China, coupled with high rates of inflation, could overheat the economy. The World Bank says inflation could reach 20 percent by the end of the year.
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