Mongolian Economy

Topics: Inflation, Economic growth, Foreign exchange market Pages: 37 (10110 words) Published: April 7, 2011

Current macroeconomic indicators

| | | | |12.2009 12.2010 | | |GDP growth (percentage) -1.3 6.1 | | |Industrial sector growth (percentage) -3.2 10.0 | | |Budget deficit (MNT billion) -342.6 3.5 | | |Unemployment (thousand people) 38.0 38.2 | | |Inflation (percentage) 4.2 13 | | |Foreign trade turnover (USD million) 4023.1 6177.1 | | | | | |Foreign trade balance (USD million) -252.3 -378.7 | | | | | | |

Main activities occurred in social and economic sectors of Mongolia during 2010

Business-enabling environment reform year

Government of Mongolia, by Resolution No. 377 dated December 30th of 2010, has declared year 2010 as the “Business-enabling environment reform year” with the purpose of supporting activities of business owners, lowering state participation in business activities to an appropriate level and providing favorable legal and regulatory conditions.

In this regard, 101 licenses and approvals were cancelled and decision was made to transfer authority to grant 10 licenses to professional non-governmental organizations on contract basis. By doing so, Government of Mongolia has dissolved 35 percent of 337 licenses for conducting business activities which is more than one third of total number. For instance, signatures of 118 officials were needed to construct one building before, but it was cut down to 56. It reduced around 480 days an enterprise spent to collect the signatures to 180 days.

Thus, in response to the government policy to annul some licenses to conduct business activities, a draft law on amending ‘law on licenses for business activities’ along with related 20 or so draft laws were discussed and submitted to the State Great Khural for approval.

Development Bank
Development Bank of Mongolia was established by the Government and its article of association was adopted. The Bank’s main responsibility is to provide financial service in the strategically important sectors. The Bank shall provide medium to long-term financing to the selected sectors, shall extend its cooperation with the international development banks and organizations and utilize domestic and foreign capital into the economic circulation. By investing in large projects to be implemented by the government of Mongolia through Development Bank, every MNT 100 billion could contribute 1 percent of growth for the economy. A draft law on Development Bank was discussed at the cabinet meeting of Mongolian government and it was decided to submit the draft to the parliament upon reflecting changes based on suggestions from the cabinet members. Government...
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