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Welcome to Monday! Lemon Press is pleased to announce that we have qualified for the respected International Fund for Public Interest Media (IFPIM) program. 🎉 6 Mongolian media organizations were selected for this initiative, and we are honored to be among them. The official launch event took place last Thursday, marking the start of this important new endeavor. 🔥🔥🔥

Today’s newsletter in 3 sentences…

• The number of Mongolian students in the U.S. reaches a new high

• Are there too many public holidays?

• The President vetoes the 2025 budget.

Let’s Dive In. 🌊

MARKET

• MSE: MSE reinstates the membership rights of "Mongolian Equity Investment Company."

• MNG: The Mongolian parliament approves the Law on Nuclear Energy.

• U.S: The number of Mongolian students studying in the U.S. increases by 12.3% each year, reaching a new high of 1,671.

🎉 Independence Day. But…

Tomorrow marks Mongolia’s Independence Day, one of the 9 public holidays the country enjoys each year. While we celebrate 16 public holidays in total annually, it is interesting to examine how Mongolia’s holiday calendar compares to those of other countries and how the number of public holidays affects national productivity.

Public Holidays 🆚 Productivity

Compared to other countries, Mongolia stands out for having a large number of public holidays. For example, Nepal celebrates 42 days of various holidays per year. Most of the countries with the highest number of public holidays are in Asia. Meanwhile, European countries tend to have fewer public holidays. Whereas in neighboring countries, China has 7 public holidays per year, while Russia has 8. Japan and South Korea celebrate 16 public holidays annually. In the United States, citizens observe 11 public holidays each year.

• 🔗 The relationship between public holidays and productivity reveals notable patterns. According to the International Labor Organization, Luxembourg, despite having 10 public holidays, leads in productivity with an hourly rate of $136. The United States ranks 6th with $63 per hour. In contrast, countries with a higher number of holidays often show lower productivity. For instance, Nepal, which has the most holidays, records a labor productivity rate of just $3 per hour. Mongolia, at $13.7 per hour, performs better than Nepal but falls behind more developed nations.

• 🤔 Critical: An intriguing aspect of daily life is how citizens utilize their free time. Mongolians sleep an average of 9.5 hours daily, and education receives just 32 minutes, or 2.2% of their day. Of the 3.1 hours of free time, 51% is spent on social media, with the rest divided between sports, art, and social activities.

While holidays support work-life balance, they can also impact productivity. Countries like Luxembourg, with fewer public holidays, maintain high productivity, while countries with many holidays often face lower output. This raises the question “How can Mongolia balance the cultural importance of holidays with the need for higher productivity in its workforce”?

In recent years, many citizens have expressed concerns about the tendency to live from holiday to holiday, questioning whether they are contributing to economic challenges. Mongolia’s economy is heavily reliant on sectors like mining and agriculture, where consistent work is crucial. As the economy faces challenges, it’s essential to consider how national holidays impact overall economic growth and stability.

🚫 President Vetoes 2025 Budget

On November 8, Mongolia’s Parliament approves the 2025 state budget despite widespread criticism from the private sector and citizens. Just 11 days later, President U. Khurelsukh exercises his constitutional authority to veto the budget in its entirety, marking a pivotal moment in Mongolia’s political and fiscal history.

• 🙄 This veto marks President U.Khurelsukh’s second during his tenure. By law, Parliament must review and decide on the President’s veto within 14 working days. Finance Minister B. Javkhlang states that the government welcomes the veto and expects Parliament to follow suit.

😏 So cliché: Double Deficit Phenomenon

The "double deficit" phenomenon, where both the government budget and the current account are in deficit, persists as a significant issue in Mongolia’s economy. Since 2000, the country’s budget faces a deficit in 18 out of 24 years, with the combined deficit exceeding ₮19.7 trillion. The situation has become almost cliché — a predictable pattern of fiscal imbalance that continues to haunt the economy.

• 🐮 Cash Cow – Coal: Mongolia’s reliance on coal exports drives the economy, but a significant 69% drop in coal prices since 2022 severely impacts revenues. Meanwhile, the GDP, which once exceeded $5 billion, now stands at $4.7 billion. External debt also increases by 13% compared to 4 years ago. Despite these challenges, Mongolia continues to approve deficit budgets, increase spending, and face rising inflation.

✒️ Final Thoughts

President U.Khurelsukh’s veto is a bold move that reflects his commitment to fiscal responsibility and legal compliance. While some critics suggest that the veto may be politically motivated, with the 2027 presidential election on the horizon, it underscores the urgent need for balanced government finances.

Overall… Mongolia has a long-standing tradition of approving deficit budgets since 2000, with the "double deficit" phenomenon remaining a constant issue. Regardless of the political context, it is crucial for the government to address this ongoing fiscal imbalance and adopt more sustainable fiscal policies. The key question remains: How long will the government continue to turn a blind eye to this persistent deficit cycle?

 🏔️ Basic Guide to Living in Mongolia

Dreaming of a life in Mongolia? This guide has everything you need to settle in, whether you're drawn to the vibrant city life of Ulaanbaatar or the serenity of the countryside. Learn to navigate the culture, cuisine, and even the extreme weather.

💡 Pro Tip: Simplify your finances and stay connected with the SendMN app—your trusted tool for expats!

🌟 Ready to embrace the Land of the Eternal Blue Sky? Share this guide with friends curious about Mongolia! 🇲🇳

⭐ Selected for you

ECONOMY & BUSINESS

• Mongolia Construction Industry Report 2024. (BakersField)

• SD Biosensor Discusses Cooperation with Mongolian Agency to Combat Infectious Diseases. (KoreaBioMed)

• Bilateral Trade Turnover Between Việtnam and Mongolia Triples. (VietNamNews)

• Mongolia Holds First National Committee Session on the Sovereign Wealth Fund and Housing. (Montsame)

POLITICS

• UNICEF to Provide Policy Recommendations for Mongolia’s Child Protection Efforts. (Montsame)

• Foreign Ministries of Mongolia and Lithuania Hold Consultative Meeting. (AKIPress)

• Upcoming Changes to Mongolian Double Tax Treaties Effective from 2025. (PwC)

• China's Environmental Protection Efforts Benefit Whole Asia Region. (Acrofan)

• During the Past 12 months, the U.S. Embassy Consular Section Issued Approximately 18,000 Visas to Mongolian Nationals. (U.S.Embassy)

MINING

• Asian Battery Metals Uncover Second Massive Sulphide Discovery at Mongolia's Oval Play. (HotCopper)

• MEIL Exports Mega Vessel For Mongol Refinery Project. (BizzBuzz)

CULTURE & LIFESTYLE

• Worsening Air Pollution in Mongolian Capital Sparks Public Alarm. (XinhuaNews)

• “Burte Chono 2024” Mongolia’s Top Sports Awards Ceremony Set for December 19. (Montsame)

• The First Route for the Cable Car in Ulaanbaatar to Be Operational Next Year. (Montsame)

• University of Minnesota Crookston Begins Joint Degree Program With Mongolian University. (KVRR)

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.