Mongolia’s economy grew 5.6% in the second quarter, more than doubling from 2.4% in the first. The headline figure is a political boon for Prime Minister Gombojavyn Zandanshatar as he enters contentious budget talks. The recovery rests on shaky foundations with fragile revenues, rising fiscal deficits and a lack of new investment.
The growth surge owed much to a sharp rebound in agriculture, which added 3.6 percentage points after several years of contraction from harsh winters. Construction contributed another percentage point, helped by stepped-up municipal infrastructure spending.
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