Asian Development Bank presents the Asian Development Outlook 2017 today. Yolanda Fernandez Lommen, ADB`s Country Director for Mongolia stated that:
"ADB forecasts GDP growth in Asia and the Pacific to reach 5.7 % in 2017 and 2018. Regional consumer price inflation is projected to accelerate to 3% in 2017 and 3.2% in 2018 on the back of stronger consumer demand and increasingly rising global commodity prices.
Risks to the outlook include higher interest rates in the US, which could accelerate capital outflows, although this risk is mitigated to some degree by abundant liquidity throughout the region. The effects of US monetary policy tightening are, nevertheless, likely to materialize only gradually, giving governments in Asia and the Pacific time to prepare.
In Mongolia, GDP growth will accelerate this year to 2.5% on large mining investments, and moderate to 2% in 2018 as coal production reaches full capacity. Looking ahead, Mongolia`s long-term prospects are promising. Large ongoing mining projects are expected to turn the balance of the fiscal budget and the balance of payments into surpluses in the years ahead. While successfully managing this mineral wealth is the key for Mongolia`s future, ensuring macroeconomic stability and making mining-led growth inclusive are among the greatest development priorities, in addition to economic diversification and higher productivity growth".
Following Akiko Tereda-Hagiwara, senior economist in ADB Headquarters in Manila presented the Mongolia`s economic outlook 2017.
GROWTH TO PICK UP IN 2017 AND 2018
INFLATION TO RISE BUT STILL MODEST
CURRENT ACCOUNT DEFICIT TO REMAIN WITH CAPITAL IMPORTS
ENHANCING THE MANAGEMENT OF NATURAL RESOURCE REVENUES
Established Fiscal Stability Fund in 2010 and the Future Heritage Fund in 2017 to set aside funds for future generations.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members 48 from the region.
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