Mongolia’s economy grew by 6.9% y/y in 2018, up from the 5.1% growth recorded in 2017, the latest data published by the National Statistics Office showed - the growth figure is slightly below 7.1% reported earlier by local media, citing he head of the cabinet secretariat, Gombojav Zandanshatar.
The recovery was mainly achieved on the back of growing minerals output and exports and improved world commodities prices. Coal mining saw a 63.1% y/y surge, due to growing coal exports to China, which replaced North Korean coal with Mongolian coal in 2017 as part of a sanctions response against North Korea's nuclear testing activities. Growth was also boosted by the $5.5bn bailout agreement reached with the International Monetary Fund (IMF) and other lenders in February 2017.
The value of Mongolia’s industrial production increased by 21% y/y to MNT15.4 trillion (€5.08bn) in 2018, according to the latest data from the country's National Statistics Office.
Under the IMF-led bailout, Mongolia has been receiving assistance from a $430mn credit facility provided by the IMF itself. Mongolia is also receiving support from a number of sources including the World Bank, the Asian Development Bank and the International Investment Bank.
A boom in FDI helped Mongolia rack up astronomical GDP growth of 17.5% back in 2011. After that, the economy went on a long downwards trajectory – the 2016 growth of 1% was down from the 2.3% seen in 2015.