AKIPRESS.COM - Mongolia's economy had robust growth in 2023 as mineral output and exports increased, leading to current account and fiscal surpluses, as well as larger international reserves. Inflation receded but remained elevated, Montsame reports.

Mining will drive growth in 2024 and 2025, particularly the Oyu Tolgoi mine, which is expected to ramp up concentrate production.

During the report presentation, ADB economist Eduard Faber said that Mongolia's economic growth was stable at 7% in 2023. This is largely due to lower inflation and government debt, as well as the full opening of borders with China.

In its flagship economic report, Asian Development Outlook (ADO) April 2024, the Asian Development Bank (ADB) projects that Mongolia's economy will grow at 4.1% in 2024, compared to 7.0% growth in 2023.

Growth in 2024 will be supported by mining and higher government spending, though the agriculture sector is expected to contract as Mongolia suffers from one of its worst winters in recent memory. The report also projects that gross domestic product growth in 2025 will climb to 6.0%, driven by an agriculture sector recovery, mining expansion, and services growth.

The ADB emphasized that the economic situation in Asia could be negatively affected by geopolitical conflicts in the Middle East. The escalation will lead to supply chain disruptions, rising food and energy prices, global economic uncertainty and reduced risk appetite.