Mongolia

An improving investment climate, supported by a raft of transport infrastructure upgrades, should help to boost Mongolia’s tourism sector this year, with the upper end of the market set to enjoy above-average growth.

A shift by Chinese buyers away from foreign suppliers to Mongolian coking coal, combined with increased optimism over a return of foreign investors, may offset the sharp global downturn in both demand for commodities and in coal prices, though it will be some time before the effects of any rebound are felt in the industry.

Investor appetite towards Mongolia could be improving amid hopes Ulaanbaatar may be in the process of settling a long-running dispute with mining giant Rio Tinto over the development of phase two of the Oyu Tolgoi mine, allaying concerns over the government's ability to repay or roll over existing debt.

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.