The national consumer price index in
May 2012, increased by 1.0 percent compared to the previous month, 9.2 percent
compared to the beginning of the year, and 15.4 percent compared to same period
of the previous year. The increase in national index compared to the previous
month was mainly due to 1.3 percent increase in food and non-alcoholic
beverages and 2.4 percent in housing, water, electricity and fuels.

According to the report of the Bank of Mongolia, money supply (broad
money or M2) at the end of May 2012, reached to 6729.6 bln.tog, increased by of
366.7 bln. tog or 5.8 percent compared to the previous month, and increased by
1300.7 bln.tog or 24.0 percent compared to same period of the previous year.

At the end of May 2012, currency issued in circulation reached 782.9
bln.tog, increased by 74.0 bln.tog or 10.4 percent compared to the previous
month, and increased by 158.1 bln.tog or 25.3 percent compared to same period
of the previous year.

Loans outstanding at the end of May 2012, amounted to 6121.2 bln.tog, up
by 185.2 bln.tog or 3.1 percent compared to the previous month, and up by
1874.4 bln.tog or 44.1 percent compared to same period of the previous year.

Principals in arrears at the end of May 2012 reached 60.1 bln.tog,
decreased by 11.1 bln.tog or 15.6 percent compared to the previous month,
decreased by 15.7 bln.tog or 20.7 percent compared to same period of the
previous year.

At the end of May 2012, the non-performing loans over the bank system
reached 315.7 bln.tog, showing decreases of 0.9 bln.tog or 0.3 percent compared
to the previous month, of 81.9 bln.tog or 20.6 percent compared to same period
of the previous year.
In May 2012, there were 23 trading days and 11.3 mln.shares valued at 4.7 bln.
tog were traded.

In the first 5 months of 2012, total equilibrated revenue and grants of
the General Government Budget amounted to 1820.0 bln.tog and total expenditure
and net lending amounted to 2224.5 bln.tog, representing deficit of 404.5
bln.tog in the equilibrated balance of General Government Budget.

Current revenue of the General Government Budget amounted to 1813.9
bln.tog and current expenditure reached 1782.3 bln.tog. Thus, the budget
equilibrated current balance was in surplus of 31.6 bln.tog.

Compared to same period of the previous year, tax revenue increased by
275.8 bln.tog or 20.4 percent. The increase was mainly due to the increases of
111.7 bln.tog or 22.7 percent in taxes on goods and services, 82.0 bln.tog or
49.9 percent in social security contribution, 36.3 bln.tog or 11.8 percent in
income tax, 32.8 bln.tog or 12.5 percent in other taxes and 11.2 bln.tog or 9.3
percent in taxes on foreign trade.

Compared to same period of the previous year, non-tax revenue increased
by 11.9 bln.tog or 6.8 percent. The increase was mainly due to the increases of
10.5 bln. tog or 73.2 percent in revenues from others, 7.4 bln.tog or 44.5
percent in revenues from oil petroleum, 4.9 bln.tog or 6.4 percent in revenues
from budget entities and 4.7 bln. tog or 31.6 percent in revenues from interest
although there was decreases of 14.1 bln.tog or 44.2 percent in revenues from
dividends and 1.7 bln.tog or 8.9 percent in navigation fee.

In the first 5 months of 2012, total expenditure and net lending of the
General Government Budget increased by 742.5 bln.tog or 50.1 percent to 2224.5
bln.tog compared to same period of the previous year. This was mainly due to
increases of 325.0 bln.tog or 46.7 percent in subsidies and transfers, 204.6
bln.tog or 2.0 times in capital expenditure, 182.2 bln.tog or 33.6 percent in
expenditure of goods and services, 18.0 bln.tog or 95.5 percent in interest
payments and 12.7 bln.tog or 49.1 percent in lending minus repayments.

In the first 5 months of 2012, spending of 403.7 bln.tog on capital expenditure
increased by 204.6 bln.tog or 2.0 times compared to same period of the previous
year. This was mainly due to increases of 194.7 bln.tog or 99.4 percent in
capital expenditure of domestic sources and 9.9 bln. tog or 4.0 times in
foreign financed capital expenditure, compared to same period of the previous
year. In the first 5 months of 2012, Mongolia traded with 121 countries from
all over the world and total external trade turnover reached 4356.1 mln.US
dollars, of which exports made up 1708.1 mln.US dollars and imports made up
2648.0 mln.US dollars.

Foreign trade balance showed a deficit of 939.9 mln.US dollars in the
first 5 months of 2012, reflecting 400.4 mln.US dollars or 74.2 percent
increase compared to same period of the previous year. The foreign trade
deficit in the first 5 months of 2012 was mainly caused by the fact that the
import growth was higher by 16.8 points than the export growth.

Total external trade turnover increased by 660.5 mln.US dollars or 17.9
percent, of which imports up by 530.4 mln.US dollars or 25.0 percent, and
exports up by 130.1 mln. US dollars or 8.2 percent, compared to same period of
the previous year.
Mineral products, natural or cultured stones, precious metal, jewelry, coins,
raw & processed hides, skins, fur & articles, animal origin products,
textile articles and auto & air transport vehicles & their spare parts
thereof accounted for 98.5 percent of the total export value amount.

Source: National Statistic Office of Mongolia