AKIPRESS.COM - The Mongolian economy is expected to recover in 2021, according to the World Bank's outlook on the East Asia and Pacific Region.

As stimulus measures prop up domestic demand, the adverse impact of the global economy recedes, and businesses and consumers adjust to the new norm in the post-pandemic era, Mongolia's economy is projected to rebound to 6.8 percent in 2021, and pick up further to 7.2 percent in 2022 and 7.1 percent in 2023, Xinhua reports citing the World Bank.

A sizable economic stimulus program launched by the Mongolian government is likely to fuel investment and non-mineral sector output through targeted policy loans, the bank said.

Moreover, global economic recovery and rising commodity prices are expected to foster foreign direct investment and production in the country's mining and other mining-dependent sectors, including transportation.

However, the bank warned that further surges in COVID-19 cases globally and domestically could seriously undermine the recovery.

Due to the COVID-19 pandemic, Mongolia's gross domestic product fell by 5.3 percent in 2020 year on year, the first contraction since 2009, according to the country's National Statistics Office.