The World Bank has revised its growth forecast for Mongolia in 2023 to 5.8 percent from 5.2 percent, due to strong rebounds in mining sector, private consumption and fiscal expansion, local media reported Wednesday.
“In the first half of 2023, Mongolia’s economy exhibited robust growth, primarily propelled by the mining sector. Early indicators suggest that this growth trend has persisted in the latter half of the year,” the bank said in its latest semi-annual Mongolia economic update.
Nevertheless, the growth has been markedly uneven, with the non-mining sector trailing behind, which underscores the economy’s heavy reliance on the mining sector, the bank said.
“While the ongoing surge in mining exports is bolstering macroeconomic conditions, the sustainability of these positive trends calls for continued reforms aimed at diversifying the Mongolian economy and enhancing its resilience to commodity price cycles,” said Taehyun Lee, World Bank country manager for Mongolia.
The country’s economic growth is expected to accelerate, averaging above 6 percent in 2025-2026, driven by a substantial increase in mineral production as the Oyu Tolgoi copper-gold mining project’s mining production is anticipated to increase two-fold by 2025.
Mongolia’s economy grew 6.9 percent year on year in the first three quarters of 2023, according to official data by the National Statistics Office.