Click here to view the original newsletter!
One month into 2018 and the outlook for Mongolia is good. A new report from Moody’s projects economic growth for Mongolia is expected to rise steadily over the next several years. The Moody’s report cites strong demand for Mongolia’s natural resources – particularly coal and copper, international financial aid packages which have helped stabilize the economy, and operations and budgetary reforms enacted by the Mongolian government as providing a strong foundation for the projected growth. Moody’s projects 3.3& economic growth for 2018, but notes that it’s predicted growth for 2017 was exceeded by growth of 4.2% for the year.
The government of Mongolia recently presented results of a 100 day operations review. While pointing out recent successes, the focus was moving forward with reforms. The plan includes some tweaks to the government’s plan to incrementally raise retirement ages, and adjustments to the recently engaged changes in personal income tax. The government plans to raise wages for civil servants in a plan that is said to have approval from the IMF, which is a major international lender to the country. According to the Prime Minister, three key legs of Mongolia’s growth going forward will be promoting a strong agricultural and food production sector, expanding the countries electrical grid and access, and constructing an oil refinery.
Mongolia has been rated “Free” by international NGO Freedom House. According to the report, freedom levels in Mongolia, rated an 85 out of 100, are basically similar to Poland, Greece, South Korea, and the United States.
English use is growing in Mongolia, and is replacing Russian as the foreign language younger generations choose to increase access to economic opportunity. Many of the most desirable jobs in Mongolia, particularly as foreign backed mining operations and other international companies, now require English. The Ministry of Education has even worked to establish educations programs in which students attending school will learn all subjects exclusively in English. While this is seen by many as an economic requirement in the changing, globalized world, it does raise concerns about the importance of a strong foundation in the Mongolian language and cultural heritage.
Mongolia is benefiting from the current globalized economic recovery, this is reflected in its stable economic growth. Growth gives government room to make reforms, which contribute to prosperity. While there are concerns about corruption, Mongolian people can be proud of the freedom and opportunity in their country. Alongside all these trends, growing English use creates an increasingly inviting prospect for foreign companies (or at least those willing to brave the cold). We expect foreign investment in Mongolia to continue to grow along with the wider economy, and our Mongolian lawyers, like the rest of the country, are happy to welcome foreign businesses and products into the country.