Mongolia

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Despite abundant energy resources, Mongolia is struggling to meet its growing demand for electricity, increasingly relying on imports until long-term projects to develop new generation capacity are completed. 

A cooling economy, persistently high inflation and tighter credit regulations will maintain pressure on Mongolia’s retail sector throughout 2015, though demand for shop space in certain segments remains strong. 

Falling mineral prices and a tapering of foreign investment resulted in slower economic growth in Mongolia in 2014. 

Banks in Mongolia are facing weaker profits this year as one of Asia's fastest growing economies cools, triggering a downpour of higher borrowing costs and an increase in non-performing loans, while credit rating agencies are watching the banks' vulnerability to China's continued economic slowdown.

The insurance sector in Mongolia is heading for consolidation with higher capital requirements likely to squeeze out smaller operators in a crowded market. However larger firms can look forward to solid growth prospects as penetration rates remain low and product awareness is on the rise.

Strong demand at home and abroad could prompt higher investment in Mongolia’s dairy industry as the country strives to return to self-sufficiency in milk, as well as capitalise on export potential in the region. 

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