Mongol Bank recently released its 2017 inflation report, estimating a two to four percent increase in GDP and a three to five percent inflation rate.

The two to four percent increase is lower than the estimate provided in an earlier report from the central bank. According to Mongol Bank, the new figures can be attributed to the slow resurgence of the mining sector and delayed investment in the development of Oyu Tolgoi’s underground mine.

Decreased household consumption and an increase in the central bank’s policy interest rate also contributed to lower projected GDP growth. The report highlighted that growth prospects in 2016 remain weak, with mild recovery predicted in 2017.

The report suggests that inflation in the price of food products will continue to decrease until the latter half of 2017. The decline in the inflation rate for food products was primarily attributed to lower prices for meat and vegetables. According to the report, overall inflation rates will be stable as product demand in 2017 is expected to drop.