A year after receiving a package of financial aid led by the International Monetary Fund, Mongolia’s mineral-rich economy is making a comeback. But for a nation that swings between boom and bust, the question investors are asking is: how long can it last?
Higher commodity prices and resurgent Chinese demand for coal has powered growth and government revenues, pulling the landlocked economy back from the brink of a classic emerging market crisis. The upswing is also due to development of the massive Oyu Tolgoi copper-and-gold mine according to Fitch Ratings Sovereigns Director Andrew Fennell in Hong Kong. Controls on government spending have helped too.