The International Monetary Fund (IMF) lowered its growth forecast for the Mongolian economy in 2022 to 1 percent, saying potential risks have already begun to materialize.

This came after IMF representatives led by senior economist Angana Banerji concluded a visit here aimed at assessing the country’s current economic and social situation and determining its medium-term prospects.

The IMF predicted last year that the Mongolian economy was expected to expand significantly in 2022, growing at 7 percent.

Mongolia is now facing a new shock emerging in the global economy, which is the Ukraine crisis. As a result, the country’s inflation is expected to remain high due to rising prices around the world.

If these issues are resolved, the Mongolian economic situation will improve next year, according to the IMF.

In the face of inflationary pressures, Angana Banerji advised the Mongolian government to provide further support only to the needy people, not the entire population.

In addition, the IMF suggested that Mongolia implement a poverty reduction program to increase tax revenues.