Mongolian Macro Economic Evaluation for 2012

By B.KHASH-ERDENE

The National Statistical Office of Mongolia released their preliminary socio economic situation evaluation on Monday. The following are their findings.
According to the preliminary estimates, GDP by production approach amounted to 13.94 trillion MNT at current price, 5.49 trillion MNT at 2005 constant price in 2012, up 2.85 trillion MNT or 25.8 percent at current price and 600.9 billion MNT or 12.3 percent at constant price compared to the previous year.
The real GDP growth for 2012 was mainly due to the 21.3 percent increase in agricultural sector, 8.9 percent increase in mining and quarrying sector, 11.4 percent increase in the transportation sector and a 9.2 percent increase in wholesale and retail trade, repair of motor vehicles and motorcycles sector.
According to preliminary estimates for 2012, GDP was 14.62 trillion MNT at current prices, reflecting increases of 3.45 trillion MNT or 30.9 percent compared to the previous year. In 2012, increases of 18.1 percent in final consumption and of 24.0 percent in gross capital formation contributed to this real GDP growth.
The national consumer price index has increased by 14.0 percent compared to same period of the previous year. The annual average inflation rate was 14.3 percent. The increase in national index was 0.8 percent higher compared to the previous month. It was mainly due to the price growth of increases of food and non-alcoholic beverages by 1.7 percent and transport by 1.1 percent.

According to the report of the Bank of Mongolia, money supply (broad money or M2) has reached 7.61 trillion MNT at the end of 2012, reflecting an increase of 1.2trillion MNT or 18.8 percent compared to the corresponding period of the previous year.
Issued currency in circulation has reached 828.5 billion MNT. This is an increase of 106.4 billion MNT or 14.7 percent compared to the previous month and 115.1 billion MNT or 16.1 percent compared to same period of the previous year.
Loans outstanding at the end of December 2012, have amounted to 6.99 trillion MNT, which is 1.34 trillion MNT or 23.9 percent higher compared to the corresponding period of the previous year.
Non-performing loans over the bank system reached 295.1 billion MNT, showing a decrease of 34.9 billion MNT or 10.6 percent compared to same period of the previous year.
As of the preliminary result of 2012, current revenue of the General Government Budget amounted to 4.84 trillion MNT and current expenditure reached 4.59 trillion MNT. Thus, the budget equilibrated current balance was in surplus of 250.6 billion MNT.
Compared to the previous year, tax revenue has increased by 533.4 billion MNT or 14.5 percent. The increase was mainly due to the increases of 212.9 billion MNT or 45.0 percent in social security contribution, 198.8 billion MNT or 13.9 percent in taxes on goods and services, 91.0 billion MNT or 15.9 percent in other taxes, 36.2 billion MNT or 4.3 percent in income tax and 4.5 billion MNT or 26.2 percent property taxes.
Compared to the previous year, non-tax revenue has increased by 93.7 billion MNT or 17.2 percent. The increase was mainly due to the increases of 66.8 billion MNT or 75.5 percent in revenues from dividends, 32.5 billion MNT or 42.8 percent in revenues from oil petroleum, 20.7 billion MNT or 35.7 percent in revenues from interest, 11.9 billion MNT or 22.8 percent in revenues from others and 3.6 billion MNT or 10.2 percent in navigation fee although there was decreases of 41.8 billion MNT or 17.9 percent in revenues from budget entities.
As of the preliminary result of 2012, total expenditure and net lending of the General Government Budget has increased by 1.04 trillion MNT or 20.9 percent to 6.04 trillion MNT compared to same period of the previous year. This was mainly due to increases of 705.2 billion MNT or 46.9 percent in expenditure of goods and services, 559.4 billion MNT or 33.0 percent in subsidies and transfers, 103.5 billion MNT or 8.1 percent in capital expenditure and 89.1 billion MNT or 3.4 times in interest payments although there was a decrease of 410.4 billion MNT or 85.5 percent in lending minus repayments.
The foreign trade balance has showed a deficit 1.78 billion USD in 2011, reflecting an increase of 1.48 billion USD or 6.1 times compared to the previous year.
Foreign trade balance showed a deficit of 2.35 billion USD. This is an increase of 573.4 million USD or 32.2 percent compared to the previous year. Total external trade turnover decreased 292.4 million USD or 2.6 percent, of which exports dropped by 432.9 million USD or 9.0 percent and imports grew by 140.5 million USD or 2.1 percent, compared to the previous year.
Mineral products, textiles & textile articles, natural or cultured stones, precious metal, jewellery, coins, raw & processed hides, skins, fur & articles, live animals, animals, origin products accounted for 98.6 percent of the total export value.