• Mongolia faces a crunch parliamentary vote on Monday which could lead to fall of coalition government
• New analysis from Mongolian Economic Development Board indicates this could lead to a sharp fall in national income and foreign direct investment (FDI), as well as spiralling inflation
• Political instability will jeopardise economic progress achieved in the last few years

ULAANBAATAR, Mongolia, May 31, 2025 /PRNewswire/ — As Mongolia’s parliament prepares to vote on Monday on whether the country’s coalition government should remain in office, new economic analysis warns that the demise of the government could see the size of Mongolia’s economy contract by over 20% within six months, and FDI fall by almost 40% year-on-year.

Prime Minister Oyun-Erdene called on Wednesday for members of the Great State Khural to decide on whether the coalition government, which has been in place since last June’s parliamentary elections, should remain as a way of ending recent political instability. The Prime Minister is due to address the Khural on Monday ahead of a ‘confidence vote’ – likely to be deemed one of the most important moments in Mongolia’s political history since becoming a democracy in the early 1990s.

As the vote approaches, new economic data – which can be viewed in full here – produced by Mongolia’s Economic Development Board warns of the scale of the economic hit Mongolia could face, namely:

• A 22% reduction in Gross National Income within six months
• A 12.2% increase in inflation within a year
• Year-on-year unemployment rising to 2.5%
• The Mongolian Tugrik depreciating against the US Dollar by 17.9% by the end of 2025
• An 18-point year-on-year decrease in Mongolia’s Political Stability Index

These forecasts are in line with the experiences of other countries where political instability has had a negative impact on the economy, including following the fall of a coalition government:

• According to data from the World Bank and other key sources, the coalition breakdown in Estonia caused FDI to tumble from 7.54% in 2021, to 0.74% in 2024, and its economic growth to stall from 7.3% in 2021, to -0.9% in 2024
• An international study analysing data from up to 169 countries between 1960 and 2004 has concluded that high levels of political instability are associated with lower GDP per capita growth, particularly due to declining productivity growth and reduced accumulation of physical and human capital

Commenting, Dr Batnasan B., Professor at the Business School of the National University of Mongolia and Member of the Economic Development Board, said:

“The latest data clearly highlights the potential economic consequences of a collapse in Mongolia’s coalition government: a sharp economic downturn, runaway inflation, and a rise in unemployment.

“It is entirely appropriate that elected representatives decide who governs the country. But it is equally important that such decisions are made with full access to the facts and a clear understanding of the potential risks.

“The Economic Development Board’s analysis—combined with lessons from other countries that have faced similar circumstances—presents a compelling warning: all the hard-won economic progress Mongolia has achieved in recent years could be jeopardized if Monday’s vote results in increased political instability.”

This new analysis, as well as precedent from around the world, clearly shows the magnitude of the decision to be taken by lawmakers on Monday, and the jeopardy to the significant economic progress Mongolia has made since the COVID-19 pandemic, including adding $9 billion USD to its economy and increasing GDP per capita by an additional $2,400.

NOTES

Economic Development Board of Mongolia: https://www.facebook.com/profile.php?id=61574363563476

Full economic analysis available here: https://nrpa.gov.mn/mn/zasgiyn-gazryn-togtvorguy-baydal

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CHENGDU, China, May 31, 2025 /PRNewswire/ — The 20th Western China International Fair was held in Chengdu from May 25 to 29 under the theme “Deepen Reform for More Momentum, Expand Openness for Greater Growth.”

This year marks the 25th anniversary of the Fair’s establishment, attracting over 3,000 enterprises from 62 countries and regions, with Bolivia, Cuba, and Nicaragua participating for the first time. Representatives from the guest countries of honor, Hungary and Laos, indicated that through the Fair, they have reached cooperation intentions with several Chinese enterprises and see broad collaboration potential with Western China in culture, tourism, technology, and culinary sectors. The next-generation artificial sun “China’s HL-3″ and other new and pioneering technologies and products were showcased at this Fair, speaking volumes about Western China’s advanced manufacturing capabilities and scientific innovation potential. Currently, 13 of China’s 80 national-level advanced manufacturing clusters are located in Western provinces.

During this Fair, various parties from Western China signed 416 investment cooperation projects with domestic and international investors, totaling 354.3 billion yuan. Economic and trade matchmaking events such as the Multinational Enterprises “Invest in Sichuan” Symposium (Italy Session) and the 15th Western China International Sourcing Conference have provided broader platforms for exchange and cooperation between Chinese and foreign enterprises.

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NANJING, China, May 31, 2025 /PRNewswire/ — A news report from JSBC:

On May 23, the Open Cooperation and Development Conference of “Nanjing Tour of German Enterprises” brought together C-suite executives from Germany’s Fortune Global 500 corporations, niche market leaders (“hidden champions”), and industry leaders to explore collaborative opportunities.

Zhang Wenwu, Vice Chairman and executive director of CITIC Group, and Dr. Clas Neumann, Chairperson of the Board of German Chamber of Commerce in China – East China addressed the conference. 

At the conference, Nanjing’s high-quality business environment was presented under the theme “Transcending Boundaries through Shared Vision: Collaborative Pathways to Mutual Prosperity.”

Zhang Wenwu emphasized that the event exemplifies concrete support for German enterprises investing in China and Nanjing, reflecting CITIC’s commitment to sustainable multi-stakeholder partnerships. He vowed to strengthen CITIC’s role as a bridge, deepening Sino-German economic ties, enhancing Nanjing’s development capacity, integrating industries with technology, and upgrading financial services.

Dr. Clas Neumann noted that the event provides a vital platform for German-Nanjing collaboration. He praised Nanjing’s robust industrial base, efficient transportation, abundant educational resources, and favorable business climate as ideal for investment. According to him, Nanjing has allocated substantial resources to new technologies and sustainable development technologies. Many German companies in the city are actively engaged in sustainability-focused sectors such as wind power, hydropower, and related industries, while numerous enterprises are also investing in digital transformation to drive sustainable practices. Meanwhile, traditional industries including automotive, chemical, and pharmaceutical sectors remain crucial in propelling economic growth. Expressing strong confidence in Nanjing’s future, Neumann pledged the Chamber’s commitment to guiding more German enterprises to explore opportunities and foster win-win partnerships.

A panel discussion on “Sino-German Future Industrial Collaboration” was held. Dr. Xiao Song, Global Executive Vice President and President & CEO Siemens Greater China, delivered a keynote speech. Panelists included Armin Necker, CTO and COO of ThyssenKrupp Rothe Erde Group; Hua Ning, General Manager of DB Schenker; Huang Yixin, Chairman of Nanjing Iron & Steel Group; and Li Chao, Vice President of Estun Automation.

The event featured the launch of the Nanjing-CITIC Global Investment and Trade Service Network and the CITIC-Nanjing Multinational Innovation Hub which are meant to assist European enterprises in investing in Nanjing while supporting local enterprises in expanding overseas through comprehensive services. A business license was awarded to Yangtze River Sci-Tech Development Co., Ltd. of Jiangbei New Area, followed by multiple project signings.

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