Mongolia’s economic growth is expected to decline sharply in 2020 due to the COVID-19 pandemic but rebound in 2021 as the outbreak subsides, according to a report released Friday by the Asian Development Bank (ADB).

In its Asian Development Outlook 2020, the bank projects Mongolia’s economic growth to drop to 2.1 percent in 2020 compared to the 5.1 percent growth rate recorded in 2019 before rebounding to 4.6 percent in 2021.

“Mongolia enjoyed a solid economic recovery in the past three years, but the COVID-19 outbreak presents a significant challenge due to the impact on global and regional economic conditions,” said Pavit Ramachandran, the ADB’s country director for Mongolia.

As Mongolia moves forward, it will need to do its best to ensure that vulnerable people affected by the economic situation are supported while retaining a close eye on macroeconomic fundamentals and financial stability, he said.

The COVID-19 outbreak likely means that record expenditure planned under the 2020 budget will not be realized, so contributions from government consumption and investment to growth are expected to decline. In addition, private consumption will be lower in 2020 because of COVID-19 and the lagged effect of consumer credit restrictions imposed in 2019, said the report.

The Manila-based ADB is dedicated to reducing poverty in Asia through inclusive and environmentally sustainable economic growth, and regional integration. (ADB)