Business integrity country agenda

Mongolia’s economy continues to experience both growth and decline. In 2012, there was a high growth rate (12.3%) but this was lower than anticipated as the nation saw its coal exports drop significantly due to China’s economic slowdown. After a sharp slowdown from 2014-16 driven by a fall in commodity prices, corruption and declining FDI, the Mongolian economy became more robust in 2017: real GDP grew by 5.1%, buoyed by strong coal exports; a recovery of FDI; and improved business sentiments. The Executive Board of the International Monetary Fund (IMF) completed its first and second reviews of Mongolia’s performance under the programme supported by the Extended Fund Facility’s (EFF) three-year extended arrangement. The growth outlook remains positive for 2018 and beyond. However, despite the improving outlook, structural challenges and limited export diversification remain: these could amplify the economy’s vulnerability to commodity price or other shocks given its reliance on the extractive industries sector (20% of GDP).