Mongolia Business and Mongolian Daily Business News

The total budget revenue for the first two months of the year 2009 was 177.1 billion MNT but total expenditure were 289.3 billion MNT bringing the deficit to 112.2 billion MNT. The worst news is that tax revenues were dropped to 106.2 billion MNT, a decrease of 19-56%. 16.5 billion MNT was generated from other types of way and this is 70% less if compared to that of the previous year.

Mongol Bank reports that the total money supply has reached 2.377 trillion MNT and it was increased by 117.2 billion MNT or 5.2% from the previous month. In comparison to the previous year money supply were dropped by 40.5 billion or 1.7%. MNT savings of individuals and firms were increased by 18.0 billion MNT or 2.0% reaching 208.4 billion MNT but this is 940.7 billion or 18.1% less than that of the previous year. Foreign currency savings were increased by 48.6 billion MNT worth or 9.8% reaching 542.2 billion MNT worth.

The both MNT and foreign currencies savings were increased in the first 2 months of the year 2009. The savings increase is good news and people may have started to trust the commercial banks after savings were secured by the government. The foreign currencies savings increase is related to the value of the MNT and the other currencies. Individuals prefer making USD or Euro savings rather than the MNT as they are better valued and much safer.

If we look at the basket of goods, inflation is at 0.6% for the first 2 months of the year 2009 an increase of 18.2% if compared to this time last year. Incomes and pensions had not changed so the real income on average had dropped significantly and this is not good news during this period of economic recession. Compared to this time last year, exports were dropped by 46.4%, imports by 45.3% but at least we did not experience a deficit as the exports were 232.4 million USD but imports were 205.8 million USD,  net export of 26.5 million USD surplus. There are slowdown in all sectors including transport, construction, agriculture and mining and another bad news is that unemployment is increasing as the situation is getting worse day by day. National statistics committee of Mongolia reports that the unemployed had reached 32.2 thousand but the % had not been revealed.

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