The World Bank has lowered Mongolia’s gross domestic product (GDP) growth forecast for 2022 to 2.5 percent from a 5.2-percent forecast in October 2021, according to a World Bank report released on Tuesday.

In a downside scenario, Mongolia’s economic growth could fall to 0.7 percent this year due to some external factors, said the report.

This forecast reflects the impact of the situation in Ukraine through higher prices of imported food, fuel and fertilizers coupled with lingering border restrictions caused by the COVID-19 pandemic.

Over the medium term, Mongolia’s economic growth is expected to accelerate to above six percent in 2023-2024, as the underground mining phase of the mineral-rich country’s largest copper mine Oyu Tolgoi becomes fully operational during the second half of 2023, according to the World Bank.

The Asian country’s GDP expanded 1.4 percent year on year in 2021.