"The growth in 2024 will be supported by mining and higher government spending, although the agriculture sector is expected to contract as Mongolia suffers from one of its worst winters in recent memory," the ADB said in its flagship economic report Asian Development Outlook (ADO) April 2024.
In the report, the bank also estimates that Mongolia's GDP growth in 2025 will climb to 6 percent, driven by the recovering agriculture sector, mining expansion, and services growing.
"The Mongolian economy performed very strongly in 2023, and we see this trend will continue," said Shannon Cowlin, the ADB's country director for Mongolia.
"This year, economic growth will be affected by the dzud disaster, which is having significant impacts on the agriculture sector, as over 6 million head of livestock have already perished as of the start of April, with the number expected to grow," she said.
That underscores the importance of boosting climate investment to meet the country's climate commitments and to bolster resilience, while attracting this investment will require improvements in both institutional capacity and the investment climate, she added.
Dzud is a Mongolian term to describe a severely cold winter when a large amount of livestock die of freezing weather.
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