MonMap

Mongolia's economic medium‐ and long‐term prospects have been transformed by the signing of the OT agreement. Nevertheless, there remain sizeable risks to the economic and policy outlook. These include signs of overheating in the economy, banking system solvency, and near‐term fiscal pressures before the sharp expected increase in mineral revenues associated with OT. The economic outlook fundamentally depends on a small number of major investment projects, particularly OT. It is therefore essential that progress on fiscal adjustment and banking sector supervision and restructuring continues, bridging the period until the start of the mining‐induced high revenue growth era in the medium term.