KEY FINDINGS
- Mongolia’s economy recorded another period of double digit growth of 11.7 percent in 2013, led by stronger copper and gold production.
- Economic policies have been focused on growth stimulus through large off -budget spending and loose monetary policy.
- National headline inflation has been accelerating since July, reaching 12.5 percent (year-on-year) in December 2013 and 12.3 percent in January 2014.
- The annual current account deficit in 2013 was US$3.2 billion—equivalent to 28 percent of GDP—following the deficit of US$3.4 billion in 2012.
- The large financing gap in the balance of payments has led to a continuous decline in international reserve levels and a sliding exchange rate throughout the year.
- In 2014, economic policies are likely to repeat the expansionary path of the last year in light of continued political emphasis on double-digit economic growth.
- Continued economic stimulus relying on external borrowing and liquidity injection will likely add to economic imbalances.