ULAN BATOR, March 26 (Xinhua) — The Mongolian economy is expected to recover in 2021, according to the World Bank’s latest economic update for the East Asia and Pacific Region released on Friday.
As stimulus measures prop up domestic demand, the adverse impact of the global economy recedes, and businesses and consumers adjust to the new norm in the post-pandemic era, Mongolia’s economy is projected to rebound to 6.8 percent in 2021, and pick up further to 7.2 percent in 2022 and 7.1 percent in 2023, the World Bank said.
A sizable economic stimulus program launched by the Mongolian government is likely to fuel investment and non-mineral sector output through targeted policy loans, the bank said.
Moreover, global economic recovery and rising commodity prices are expected to foster foreign direct investment and production in the country’s mining and other mining-dependent sectors, including transportation.
However, the bank warned that further surges in COVID-19 cases globally and domestically could seriously undermine the recovery.
Due to the COVID-19 pandemic, Mongolia’s gross domestic product fell by 5.3 percent in 2020 year on year, the first contraction since 2009, according to the country’s National Statistics Office.
As of Friday, Mongolia has confirmed 6,332 COVID-19 cases, with nine deaths. Most of the confirmed cases were locally transmitted and detected in the capital Ulan Bator, which is home to over half of the country’s population of 3.3 million.
The country has launched a national vaccination campaign in late February, with the aim of vaccinating at least 60 percent of its total population. About 257,000 people have been vaccinated so far, according to the health ministry.
Earlier in February, the Mongolian government announced a comprehensive plan involving 10 trillion Mongolian tugriks (3.5 billion U.S. dollars) in the coming three years to protect public health and revive the virus-hit economy. Enditem