The Financial Stability Council (FSC) presented a half-year report on the nation’s financial stability and announced that Mongolia’s economic growth is facing a slowdown.
“Due to falling prices for mineral products and raw materials in the global market, foreign direct investment in Mongolia’s mining sector has drastically lowered. The excess demand, created in the internal market in recent years, has shrunk and the balance of payments deficit has slightly decreased, creating the possibility for ensuring the foreign trade balance in the economy,” the report reads.
The FSC reported that following the shrinking of internal demand in the economy, the nation’s economic growth reached 7.9 percent in 2014, 2.3 percent in 2015, and 3.1 percent in 2016.
They underlined that the slowdown in economic growth and the fact that Mongolia’s domestic economy is highly dependent on the foreign market cause risk and challenges for the financial stability of Mongolia.