Slower economic growth and rising debt levels were the main themes of the past year, though Mongolia’s new government is acting to restore foreign investor confidence while seeking to curb the country’s growing budget deficit.
Like many of its emerging market peers, Mongolia felt the weight of falling commodities prices and weaker global demand in 2015. However, progress made in moving major mining and transport infrastructure projects forward is expected to pave the way for recovery in the near to medium term.
The current drive in Mongolia to promote growth and foreign investment appears likely to yield results, as a key breakthrough in a long-running dispute over the expansion of a mine will help act as a stimulus for a 10-year, $1bn sovereign issue in the coming months.
An improving investment climate, supported by a raft of transport infrastructure upgrades, should help to boost Mongolia’s tourism sector this year, with the upper end of the market set to enjoy above-average growth.