Wednesday, June 22, 2016
Mongolian economy continues to improve albeit slowly
The Mongolian recession entered its 28th month in June but there are signals that business conditions are slowly improving. If this trend continues it is likely that the summer months will offer a respite from these challenging conditions. Up to 39.0 in June from 36.9 in May, the World Economics Headline Sales Managers' Index (SMI) for Mongolia indicates easing business conditions across the country. Market growth remains low, but is continuing to build on the upward trend exhibited in the past few months.
The index is well below the 50 mark which would indicate expansion. Nevertheless the index is heading in the right direction. Elections for parliament will be held on 6/29/2016 and after those results we may have a more clear view of what will happen policy wise. OT underground should be starting to contribute to the economy as ramp up to starting work continues.
All recessions and depressions eventually end. After 28 months of decline we are more than likely closer to the end than the beginning.