Mongolia’s economic growth for 2021 will be 4.3 percent, below thatpreviously forecasted by the World Bank.

The fight against the novel SARS- CoV-2 coronavirus, which caused the Covid-19 pandemic, caused a rise in the region’s fiscal deficit; so many governments resorted to domestic indebtedness, and others, such as Mongolia, to external financing.

Economic activity in the region will remain below the pre-pandemic levels, reflecting the lasting damage from the Covid-19 impact.

As long as the uncertainty over the Covid-19 disease remains high, investment and productivity will continue to be depressed in countries such as Mongolia, which depend on the boost from the big Asian economies.