Mongolia

Abstract

During the three-year EFF which expired at end-May, Mongolia experienced rapid economic growth and was able to make some progress in the reduction of key vulnerabilities. However, with the outbreak of the global pandemic, the outlook has now deteriorated sharply. There are few domestic cases of the virus, but real GDP is expected to contract by 1 percent in 2020 due to a collapse in external demand and the domestic impact of social distancing measures. With still high public debt, net international reserves near zero, and a difficult near-term amortization schedule, Mongolia has limited buffers to withstand a large and sustained external shock.