Can Coal Drive Growth Despite China’s Economic Slump?
Mongolia’s Government Set to Boost Economic Growth with Ambitious Plans for 2025
Mongolia’s government is gearing up for 2025 with bold plans to drive economic growth through increased infrastructure spending and a focus on expanding coal exports. The proposed budget, recently presented to Parliament, outlines a record level of investment in infrastructure projects, with a particular emphasis on the mining sector.
A key component of Mongolia’s economic strategy is the goal of boosting coal exports by 20% to reach 83 million tonnes. This increase in coal production, along with plans to ramp up copper, gold, and iron ore output, forms the foundation of the government’s revenue plan.
However, the success of these ambitious growth targets is heavily reliant on Mongolia’s ability to navigate the challenges posed by external markets, especially in light of China’s economic slowdown. China, Mongolia’s largest trading partner, is experiencing slowing growth and tempered demand for raw materials. This has raised concerns about the feasibility of Mongolia’s aggressive growth goals.
Reports indicate that some private coal miners in Mongolia are encountering difficulties in selling their coal through open bids, as Chinese buyers exercise caution amid fears of potential price declines. The government will need to carefully monitor market dynamics and adapt its strategies to ensure the sustainability of Mongolia’s economic growth trajectory in the face of external challenges.
