Asian Development Bank Projects Steady Growth
Asian Development Bank Projects Steady Growth
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The Asian Development Bank new report, Asian Development Outlook 2019 (ADO) sets expectations for economic growth in Mongolia to remain steady over the next two years. GDP growth is predicted to be 6.7% in 2019, slightly down from 2018’s 6.9% and 6.3% in 2020. Factors contributing to steady growth are rising domestic demand, increases in services and manufacturing sectors, and improvements in agricultural output.
The report points to strong economic growth in 2018, which has raised investor confidence in the developing countries economy and contributed to stability. The report also points to government policy as a strong point with governmental policies focused on practical development and stable macroeconomic approaches to the economy to avoid growth-recession cycles seen in the past.
The report sees transportation sector activity to increase on the strength of mining exports. Growth in Mining sector, and steadily increasing meat product processing will contribute to manufacturing gains. Significant public sector investments in infrastructure is expected to increase construction activity.
However, the report notes risks to the Mongolian economy, notably external factors such as potential global reductions in mineral prices, or lower overall growth in China, which is a major contributor to Mongolian growth. The report also mentions potential for problems in the Mongolian banking sector.
Meanwhile, Mongolia has passed a major update to it’s national Law on Procurement of Goods, Works and Services with State and Local Funds.
The amendments aim to promote procurement from local Mongolian manufacturers and service providers, increase transparency in procurement, develop an electronic tender system, and emphasis environmentally friendly procurement. The amended law will come into effect on June 01, 19
According to the amended law:
- each Government Ministry will be responsible for only its own internal procurement. Other tenders will be managed by separate independent agency established for that purpose;
- Domestic products and services which satisfy procurement requirements will be given priority;
- A procurement blacklist will be put into place, so that companies which fail to meet standards in a project will be restricted from participating in future tenders;
- Public procurement will be completely digitized and performed online.
- Procurement will consider economic use of energy and natural resources, and seek to minimize harm to the environment and human health.
