The World Bank has warned that Mongolia faces economic risks from its rapidly growing economy, but the National Statistics Committee (NSC) has another view.

The NSC estimates economic growth at 17 percent and says it has greatly benefitted the country’s population. The NSC also has a different take than foreign and domestic experts on rising prices and inflation.

Mongol Bank has explained that it is having trouble curbing inflation and that the current inflation rate of 11.6 percent could rise to 15 percent in 2012. Accordingly, Mongol Bank President L.Purevdorj has asked Parliament to make budget cuts. But the NSC estimates inflation is just 6.7 percent. The NSC says the methodology it uses to calculate inflation is different than Mongol Bank’s.

Mongol Bank has raised its rate to 12.25 percent to curb inflation, and commercial banks have also increased their interest rates to limit loans. Nonetheless, the number of loans issued increased from 2010 to 2011. According to the NSC, outstanding overdue loan debt was MNT 71 billion in October 2011, a reduction of MNT 7.6 billion (9.7 percent) from October 2010.

The NSC says Mongolia’s budget had its first surplus in 2011, mainly due to mining revenue. The NSC notes that foreign experts claim citizens’ living standards have worsened despite the economic growth. But the NSC says it has found that living standards are improving due to economic growth, as well as the monthly MNT 21,000 motherland allowance that each citizen receives. But the NSC could not quote concrete data showing that vulnerable households’ living standards have changed.

The NCS also noted that Mongolia’s trade deficit was USD 17.9 million in 2011, the highest in the country’s history. Imports increased by USD 2.8 trillion and exports by USD 1.5 trillion.