Economic growth in Mongolia will slow down in 2015, reflecting necessary fiscal and monetary tightening to contain inflationary and balance of payments pressures, says a recently released report of the Asian Development Bank (ADB). The report forecasts gross domestic product (GDP) growth in Mongolia to reach 3% this year, down from 7.8% in 2014.

However, according to the ADB forecast, 2015 may see recovery in the mining sector and the economic growth that could reach 5 percent in 2016 thanks to a stable external environment. ADB also says that the Government of Mongolia’s immediate policy challenge is to tighten monetary and fiscal policy to address pressure on the balance of payments, while safeguarding financial sector stability, debt sustainability and the welfare of the population, especially for citizens living under the poverty line.