ULAN BATOR, April 3 (Xinhua) -- Mongolia's Economic growth is expected to ease slightly in 2019 and 2020, but will continue to maintain solid growth momentum thanks to strong domestic demand, stable services, manufacturing and recovery of the agriculture sector, the Asian Development Bank (ADB) forecast on Wednesday.
According to the latest Asian Development Outlook (ADO) 2019, the ADB's flagship economic publication, economic growth in Mongolia will slow to 6.7 percent in 2019 and 6.3 percent in 2020. The growth of the Asian country's mining-dependent economy was 6.9 percent in 2018.
"The Mongolian economy has performed better than expected in 2018. The country's economic growth prospects continue to be positive going into the next two years," Yolanda Fernandez Lommen, ADB country director for Mongolia, said while delivering the ADO.
Mongolia's inflation rate is expected to reach 8.5 percent in 2019 compared to 6.8 percent in 2018 due to rising domestic demand supported by higher government expenditure, as well as the effects of the national currency's depreciation and higher fuel prices in the second half of 2018.
Meanwhile, there are some external risks to the Mongolian economic growth, including commodity price fluctuations in the global market, the ADB warned.
The ADB, based in the Philippine capital Manila, is dedicated to reducing poverty in Asia through inclusive and environmentally sustainable economic growth, and regional integration.
Established in 1966, the ADB has 68 members, including 49 from within the Asia-Pacific region. In 2018, the bank made commitments of new loans and grants amounting to 21.6 billion U.S. dollars.