The economic rebound in recent quartershas been stronger than expected and the economy is showingsigns of overheating. These signs are show up in risinginflation, especially of those goods and services which arein strong demand, but cannot easily be imported or whoselocal supply cannot readily be increased to meet the growingdemand. Gross Domestic Product (GDP) growth reached 20.8percent year-on-year (yoy) in Q3, following an outturn of17.3 percent in Q2. Growth for the year as a whole willlikely hit 15 percent, if not more, up from 6.4 percent in2010, and is being pushed by infrastructure spending asMongolia develops its vast mineral wealth. Inflationcontinues its upward trend. The trade deficit is close torecord levels (US$ 1.4 bn in September using 12-monthrolling sums) driven by a surge in mining-related equipmentand fuel imports. Exports are growing strongly too, drivenby large coal shipments to China. The 2012 budget continuesthis fiscal expansion and targets a 74 percent increase inexpenditures (mostly on wages and social transfers).
PDF
download
878987797
028-85220240
