The Headline Mongolian Sales Managers’ Index (SMI) was 44.7 in April, a solid improvement from the level of 41.7 in March. There has been a rapid increase in the levels of all component indexes of the SMI over the past 6 months, indicating that the economy has turned a corner from the low in 2016.
There is the prospect of renewed growth over the coming months if the current trends continue. In unadjusted terms the Market Growth Index grew to 49.6 in April, the highest level since January 2014. The Business Confidence Index also increased rapidly with panel managers reporting renewed optimum stemming from the $440million loan package from the IMF. The government has indicated that they would like to stimulate growth for the key mining, agriculture and tourism sectors.
It appears that there is finally light at the end of the tunnel. Hopefully this trend will continue and we can see renewed growth in the Mongolian economy.
#Mongolia's $MNT halts 17-day winning streak vs $USD; $USDMNT up ₮6.64 Tuesday to ₮2,411.53 | April 18 https://t.co/ey1IwpP7Jo pic.twitter.com/Yn93IMqyqq— Cover Mongolia (@CoverMongolia) April 18, 2017
The Mongolian Tugrik has been strengthening against the dollar the last few weeks.