Mongolia Economic Update : Navigating Stronger Headwinds - Fiscal Sustainability of the Mongolian Pension Scheme
The report provides recent macroeconomic developments, outlook, and risks that Mongolia faces. The timing of the release of this report is ideal considering that, the Mongolian economy, which was recovering from the COVID-19 on the back of a succes...
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| Language: | English |
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Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099217304262220163/IDU075eaf9ad0a3f4040f0099870c4ddc3edcadb http://hdl.handle.net/10986/37373 |
| Summary: | The report provides recent
macroeconomic developments, outlook, and risks that Mongolia
faces. The timing of the release of this report is ideal
considering that, the Mongolian economy, which was
recovering from the COVID-19 on the back of a successful
vaccination program and income support, faced new challenges
due to tightening of global financing conditions, triggered
by a surge in inflation in advanced economies. This
development complicates Mongolia’s repayment of its large
external debt. Mounting instability and heightened risks
call for adjustments in macroeconomic policies. The report
also includes a special topic on fiscal sustainability of
the Mongolian pension scheme. A series of parametric reforms
are recommended to improve the financial sustainability of
the current pensions system, which relies heavily on budget
subsidy. Produced in collaboration with the SPJ team, this
discussion was timely considering a forthcoming pension
reform to improve Mongolia’s long-term fiscal sustainability. |
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