Mongolian economy is stable, says Minister of Economy

On May 24, Minister of Economy and Development Ch.Khurelbaatar gave information regarding the economic situation of Mongolia. Minister Ch. Khurelbaatar said, “In the first quarter of this year, Mongolia’s economy grew by 7.9 percent. Currently, forein exchange reserves have reached 3.8 billion USD and are stable. The economic growth was driven by continuous growth in exports and a 3.3-fold increase in coal production. As the production of Oyu Tolgoi has increased by 43 percent more than planned, it creates a favorable condition for the growth of Mongolia’s economy.

On the other hand, every sector except mining, construction, and transportation reached the pre-pandemic level. The income of the agricultural sector is falling. The income of the agricultural sector is at negative 5.1 percent due to the excessive loss of livestock and the low number of new calves. Domestic demand is unchanged. Foreign demand is the main driver of the economy. Foreign exchange reserves tend to grow constantly.”

At his presentation he informed that 18 projects are planned to be completed this year. For example, the road construction for Tavan Tolgoi Manlai, Khangi direction, Shaamar, Zelter, Zuunburen, Tsagaannuur, and Tushig direction, renovation of Khentii Province airport, and container loading terminal at Khangi port.

Also, they are working to implement the Selbe project this year. The Ministry of Energy is giving instructions to start work on the Erdeneburen Hydro Power Plant this year and to announce an international tender for the Tavan Tolgoi Power Plant. Currently, contracts and negotiations for the expansion of Thermal Power Plant-3 are underway.