1. Economic State
Invescore Property LLC, 2024
- Economic state
In the year 2023, the economy experienced a stable period and grew by 7.0% from the previous year, surpassing the expectations of international economists. Each sector had a different level of economic growth according to production method estimates.
The mining sector had the highest growth rate (+23%) followed by the transport sector (+39%). On the other hand, the agricultural sector experienced a shrinkage of 9%.4 Furthermore, in terms of revenue, the tourism industry showed a significant increase, generating $1.3 billion compared to $350 million in the previous year (+270%).
Mongolia's forecasted Economic Growth and Performance in 2023
Source: Respective websites from each institution
Economic Growth of some Industries in 2023
Mongolia's 2024 economic growth forecast
Source: Respective websites from each institution
Projection of the Bank of Mongolia:
In 2024: 6.2% [3.8-8.6]
An increase in mining output and a weaker fiscal outlook will support domestic economic activity.
In 2025: 5.3% [2.2-7.9]
Despite the increase in Oyu Tolgoi production and the growth of the mining industry, the decline in foreign investment and tightening of the fiscal outlook will hurt the non-mining sector, and economic growth is expected to slow down.
Loans issued by banks
The valuation of the Mongolian Stock Exchange exceeded MNT10 trillion for the first time in 2023 as the five largest commercial banks traded 5-11 percent of their shares to the public and raised MNT473 billion.
Blackrock, the world's largest investment management company, manages a total of $10 trillion in assets, almost 3500 times higher than the sum of all securities on the Mongolian Stock Exchange.
As of October 2023, the annual loan growth rate has reached 15.7%.
Source: Bank of Mongolia
To be continued...
Economic State
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