Mongolia Roundup: World Bank talks, credit rating, China partnership

Mongolia and World Bank strengthen development cooperation

Prime Minister of Mongolia, Zandanshatar Gombojav, met with World Bank Vice President for East Asia and the Pacific, Manuela V. Ferro, on September 2, 2025. The Prime Minister thanked the Bank for its long-standing contribution since 1991 and outlined policy priorities, including human development, green transition, digital transformation, and tax reform. He stressed the need to diversify the economy beyond mining, expand exports, and improve affordable housing access to reduce air pollution in Ulaanbaatar. Ferro praised Mongolia’s recovery after COVID-19 and highlighted agriculture, renewable energy, and tourism as key diversification sectors. The World Bank reaffirmed its readiness to support Mongolia’s development agenda.

Prime Minister emphasises agriculture as backbone of economy

During a visit to Darkhan-Uul aimag, Prime Minister Zandanshatar underlined agriculture’s central role in Mongolia’s economic growth, pointing to the Eurasian market as an opportunity for agricultural exports. Officials from the Ministry of Food, Agriculture, and Light Industry reported progress under the “Food Revolution” and “White Gold” movements, including concessional loans, increased crop and livestock production, and strengthened cashmere and leather processing. More than 2,500 new jobs have been created and 25 new food processing plants commissioned. Agriculture contributed significantly to Mongolia’s 5.6% economic growth in the first half of 2025.

Fitch reaffirms Mongolia’s credit rating

Fitch Ratings has maintained Mongolia’s sovereign credit rating at “B+, Stable,” citing stable growth and prudent fiscal management. The agency forecasts GDP growth of 5.7% in 2025 and 5.3%t in 2026–2027, supported by copper exports and recovery in agriculture. Fitch projects government debt will fall below 40% of GDP in the medium term, while external debt refinancing has eased repayment risks for 2026–2027. However, risks remain due to reliance on raw material exports and inflation, projected at 8.5%t in 2025–2026.

China and Mongolia deepen strategic partnership

On September 2, President of China Xi Jinping met President of Mongolia Khurelsukh Ukhnaa in Beijing. Both leaders reaffirmed their commitment to a comprehensive strategic partnership, emphasising stronger mutual trust, infrastructure connectivity, and joint modernisation goals. Discussions focused on cross-border railways, renewable energy, agriculture, and environmental protection. Agreements were signed on honey exports, customs, quarantine cooperation, metrology, and media collaboration. Xi Jinping praised progress on joint projects such as the Gashuunsukhait-Gantsmod railway and Erdeneburen Hydropower Plant, while both sides pledged to boost bilateral trade toward $20 billion.

Mongolia projects self-sufficiency in flour production

The Ministry of Food, Agriculture, and Light Industry announced that this year’s wheat harvest will largely meet domestic flour demand, with 255.8 thousand tons expected. While a shortfall of about 100 thousand tons will require imports, the Government has prioritised strengthening agriculture through the “Atar-4” campaign, “White Gold” movement, and “Food Revolution” program. Agriculture contributed 3.6% to GDP in the first half of 2025, creating 58,000 new jobs. Plans include expanding concessional loans for private businesses, boosting meat exports, and easing pressure on overburdened pastureland by directing livestock into economic circulation.