World Bank informed that the Mongolian economy growth is 16.7% as of the first quarter 2012.
But inflation rate is 16% by April 2012, due to the cash distribution from the Government, instability in the world economy and drop in the Chinese export size. Therefore, World Bank urges the Mongolian policymakers to follow stricter monetary policy.
Ms. Coralie Gevers, the new Country Manager of the World Bank for Mongolia, stated that “The Government expense overcomes its revenue, causing increase in budget loss. As for April 2012, the budget loss reached 4.7% of GDP. Also distribution of the cash promises could fuel the budget loss into the 13% of GDP. In April, the Mongolian export is stable and unemployment is steadily decreasing, but the high inflation rate could bring “overheat” in the economy.”