IMF Reports Mongolia's Economy Growing Due to Mining, Warns of Inflation and Fiscal Risks

The IMF reported Mongolia's economy is experiencing robust growth, primarily driven by a mining boom that boosts exports, reserves, and fiscal revenues. However, the IMF cautioned that a proposed large fiscal expansion in the 2026 supplementary and 2027 draft budgets, funded by volatile mining revenue, risks exacerbating inflation. The Bank of Mongolia responded to high inflation by raising its policy rate and domestic reserve requirements by 50 basis points each in August.