|Even a child can recognize the uptrend|
Tuesday, July 19, 2016
Mongolian economy moving out of recession
The Mongolian economy has continued to grow and is now poised to end its 3 year long recession. The key monthly Sales Growth Index, which is an accurate gauge for GDP growth, has posted the first unadjusted reading above the 50.0 no change level since the summer of 2013. Stronger sales are also driving improved Business Confidence and an easing in the amount of price deflation. It’s too early to know if these improvements will continue for the remainder of the year but for now this good news will offer some reprieve for the struggling Mongolian economy.
The trend in the SMI is clear and it is heading higher. No economy stays in recession forever. The Mongolian economy is an economy based on commodity exports. I expect commodity prices to gain strength after a five year bear market. In fact this has been one of the worst resource market bear markets of all time. The recovery from these lows should be consummate with the decline.
I noticed Mongolia growth Group stock is moving higher in anticipation of a recovering economy.