Economic growth rate reached 11 percent
The World Bank, The Mission Statement in Mongolia has presented economic conditions of the third quarter of 2012. Economic growth rate in Mongolia expanded by 11.00 percent in the third quarter of this year. Around 90 percent of growth came from mining. Although GDP has dropped by 5.5 percent in the first quarter of this year, economy will not drop, states The World Bank. Predictions reveal, economic growth rate may increase at least by 10 percent until end of 2012.
However export dropped by 39.0 percent in July and August compared to last year’s. This was the highest since 2009. Such decline in export and growth in import may effect the economy and inflation, reports The World Bank.
Even though inflation has been stable for the past few months, food prices are still increasing. The price of meat and dairy product increased by 49.5 percent and expenditure by 20.2 percent in August compared to last year. Thus, the draft law of the State Budget project will constrain those expenditures, which will be regulated according to the law on Budget Stability and reduce the above mentioned economic risks.
In addition, due to “OyuTolgoi” project’s completion, direct foreign investment are expected to decrease. Ms.Coralie Gevers, the World Bank's new Country Manager and Resident Representative in Mongolia, warned that if OyuTolgoi company productions are delayed, Mongolia’s economy growth might experience a slow growth.
However export dropped by 39.0 percent in July and August compared to last year’s. This was the highest since 2009. Such decline in export and growth in import may effect the economy and inflation, reports The World Bank.
Even though inflation has been stable for the past few months, food prices are still increasing. The price of meat and dairy product increased by 49.5 percent and expenditure by 20.2 percent in August compared to last year. Thus, the draft law of the State Budget project will constrain those expenditures, which will be regulated according to the law on Budget Stability and reduce the above mentioned economic risks.
In addition, due to “OyuTolgoi” project’s completion, direct foreign investment are expected to decrease. Ms.Coralie Gevers, the World Bank's new Country Manager and Resident Representative in Mongolia, warned that if OyuTolgoi company productions are delayed, Mongolia’s economy growth might experience a slow growth.
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