ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Economy

Goodbye volatility, hello steady growth, says Mongolia's finance chief

IMF is helping set the stage for years of 6-8% growth

Mongolian Finance Minister Choijilsuren Battogtokh (Photo by Shinya Sawai)

ULAANBAATAR Mongolia is promoting macroeconomic policies aimed at producing years of stable annual growth of 6-8%, Finance Minister Choijilsuren Battogtokh told the Nikkei Asian Review.

The Mongolian economy roared ahead at a world-beating 17.3% in 2011. Just five years later, however, growth nearly ground to a halt, expanding a mere 0.3%, according to the Asian Development Bank.

The economy has been "unpredictable and high-risk [for investors]," Choijilsuren told the NAR in mid-January. But "at a 6-8% pace, we can constantly grow for at least 10 years." During that period, the country can "regain investors' confidence and establish a ... foundation for development," he said.

Mongolia's growth target is in line with advice from the International Monetary Fund, with which the country is negotiating a financial aid package. Choijilsuren said his government and the IMF will likely agree on the basic conditions by Feb. 15. Such conditions typically include fiscal and monetary austerity measures and structural reforms.

In November, the Mongolian parliament approved the 2017 budget, which calls for slashing spending by over 10% from 2016. Choijilsuren said those reductions will continue in 2018, and that the government will further trim the 2017 budget if the talks with the IMF suggest it is necessary.

"Of course people don't like budget cuts," Choijilsuren said. "But our [ruling Mongolian People's Party] is not working for election votes but for the nation," he said, a reference perhaps to populist spending measures of previous governments that have caused the fiscal deficit to balloon to 18% of gross domestic product.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more