#IMF Lowers Growth Forecast For #Mongolian Economy To 1%—The International Monetary Fund (IMF) on Wednesday evening lowered its growth forecast for the Mongolian economy in 2022 to 1 per cent, saying potential risks had already begun to materialise.
This came after IMF representatives led by senior economist, Angana Banerji, concluded a visit that aimed at assessing the country’s current economic and social situation and determining its medium-term prospects.
“The IMF predicted last year that the Mongolian economy was expected to expand significantly in 2022, growing at 7 per cent.
“But, at the time, we said that the Mongolian economy could face many risks, which unfortunately have begun to materialise.
“Moreover, Mongolia is now facing a new shock emerging in the global economy, which is the Ukraine crisis.
“As a result, the country’s inflation is expected to remain high due to rising prices around the world,” Banerji said.
If these issues were resolved, the Mongolian economic situation would improve next year, according to the IMF.
In the face of inflationary pressures, Banerji advised the Mongolian government to provide further support only to the needy people, not the entire population.
In addition, the IMF suggested that Mongolia implement a poverty reduction programme to increase tax revenues
