The World Bank has lowered its economic growth forecast for Mongolia. The updated estimate for 2025 is 5.9 percent, which is 0.4 percentage points lower than the previous forecast. This revision comes as the country faces economic challenges, including global slowdowns and trade restrictions.
East Asia and the Pacific are also expected to experience slower growth. The World Bank forecasts the region will grow by 4.3 percent in 2026. Although this is a decline, the 2026 forecast has improved slightly to 5.6 percent, signaling potential recovery in the future.
Mongolia’s revised economic growth forecast reflects both domestic issues and global trends. The country relies heavily on mining exports, making it vulnerable to fluctuations in global commodity prices. The ongoing global slowdown is likely to reduce demand for Mongolia’s exports. Still, the World Bank remains cautiously optimistic, predicting moderate recovery by 2026.
The World Bank emphasizes that the region’s future growth depends on countries implementing bold reforms. The organization stresses the importance of strengthening productivity and resilience in the face of global uncertainties. Mongolia, in particular, should focus on structural reforms that will improve economic stability.
Other countries in East Asia and the Pacific face similar challenges. Trade barriers, global uncertainty, and weaker demand for exports weigh on their economies. However, the World Bank believes that these nations can recover by 2026 if they adopt effective reforms. Governments need to boost productivity and create policies that reduce exposure to external shocks.
The report also stresses that governments must manage domestic policies effectively. Global trade flows remain unpredictable, and Mongolia must adapt to changing conditions. Alongside its regional peers, Mongolia should pursue reforms to strengthen its economy and ensure long-term growth.
Looking ahead, the World Bank’s revised economic growth forecast underscores the need for strategic actions. Mongolia’s leaders must focus on improving productivity and diversifying the economy. Bold reforms will help secure stable, long-term growth despite the uncertainty in global markets.
