Just two short years ago, Mongolia basked in a vibrant economy with a sizzling growth rate of nearly 8 percent.
Mongolia’s credit rating is considered speculative, and its battered economy is debt heavy. However, the country has vast reserves of coal and gold: International Monetary Fund data show that Mongolia ranks alongside Chile, Peru and Australia as one of the world’s most mineral-rich economies.
Those attributes haven’t helped keep the economy from falling into dire straits, with 2016 growth not expected to top 1 percent, while its debt load nearly doubled from $11.7 billion in 2012 to nearly $23 billion in 2015.
“Macroeconomic policies have been poor in recent years, which led to a very rapid debt buildup,” Nicolas Jaquier, London-based economist focusing on emerging market debt with Standard Life Investments, told CNBC in an interview.