Mongolia may be poised for a new phase of economic growth according to Nikkei Asian Review. After an initial mining boom in 2011 and 2012, with growth reaching up to 17% of GDP in 2011, The Mongolian economy slowed. Low commodities prices led to reduced economic growth.
That may be set to change. According to the article, commodities prices increased toward the end of 2016, setting Mongolia up for a new phase of growth; if the right policies can be found to cultivate growing industries.
In addition to the Mining industry, the article gives examples of two Mongolian entrepreneurs who are producing and marketing new diabetes testing devices. The article also points to initiatives to increase renewable energy production capacity in Mongolia.
In the past, Mongolia’s windfall from mining resulted in poor planning and waste. Recent reforms by the new government have encouraged the International Monetary Fund to step in with new funding to ease Mongolia’s foreign debt burden.
If the trend of smart government continues, and at LehmanLaw Mongolia we think it will, the country is well placed for continued future growth. The key will be to diversify the economy away from reliance on the mining sector and to promote entrepreneurship and small business. The recent tax break on small business is a step in the right direction.