Mongolia’s quick and vigorous action on preventing the spread of COVID-19 has resulted in a notable success in fighting the pandemic so far. The country has had relatively few cases – only 310 confirmed cases and still no deaths in the middle of September 2020. But this success has come at a price.

According to the UN, in the first quarter of 2020, Mongolia’s economy contracted by 10.7 percent, and government revenue fell by 8.6 percent year on year, whilst expenditure went up 19.3 percent. On the other hand, the country struggles to boost its export-driven economy that is tightly tied to China. The Asian Development Bank (ADB) estimates show that Mongolia will suffer significant investment and consumption shocks in addition to negative global demand spillovers in 2020. In addition to that, there is mounting international debt.