Mongolian Economic Growth Again Tops Global Charts

The International Monetary Fund has introduced a renewed global economic growth projection. In June they estimated the global economic growth to be 3.5 percent but Wednesday’s calculations stated 3.3 percent. Bloomberg noted that this is the lowest estimation since 2009. “The European Union stated that the reason the recession hasn’t subsided until now is due to the fact that the federal government of USA hasn’t done anything about it” states Oliver Blanchard, senior economist of International Monetary Fund.
He also noted that if USA does not increase their GDP by four percent, the global economy will not grow.
The economic growth of countries within the European Union’s is at 0.4 percent and is expected to decrease next year to 0.2 percent.

The economic development projection for China was estimated by the World Bank to be 7.7 percent, which is the lowest since 1999. Last year, China’s economic growth rate was 9.3 percent.

They have also released their projection for 14 countries in East Asia (except Japan). In May the International Monetary Fund projected Asia would grow by 7.6 percent overall, but this projection has now been reduced to 7.2 percent.

The World Bank concluded that the economic shift we are seeing now is due to the European economic recession which has hurt China’s development. China is the second largest economy in the world and in turn this has affected the import and export of countries within Asia.

This year Mongolia’s economy is expected to grow 11.8 percent, China 7.7 percent, Indonesia 6.1 percent, Malaysia 4.8 percent, Thailand 4.5 percent and Vietnam 5.2 percent. According to this projection, Mongolia’s economy will experience more growth than any other nation. Even so, 11.8 percent growth is comparably low to the previous estimation of 14 percent which was projected to be consistent in the coming four years.

The World Bank has noted that they expect China’s economy to gain and propel the East Asian economy to 7.6 percent but if the European recession continues, the economic situation will decline.

The World Bank and the International Monetary Fund both expect next year’s economic growth to be 3.6 percent. But this projection has been reduced since the July estimation which was 3.9 percent.

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