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Subject

The political and economic outlook for Mongolia.

Significance

The Mongolian People's Party secured a landslide victory in an election in June and formed a government that set about drafting policy for an economy in near crisis. Some early moves have been reassuring, but history shows that expectations can be badly disappointed, whoever holds power in Mongolia.

Impacts

The economy will remain under pressure despite efforts to address problems at its main stress points.

Policy efforts will focus on refinancing debt and rebalancing the public accounts.

Chinese interest in Mongolia, already significant, will increase.

Policymaking will run into vested interests despite the government's huge majority in parliament.

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