Source: ResCap’s Mongol Minute                          Date: 31 August, 2011

The claim from skeptics that Mongolia may be another bubble could be harmful to Mongolia, warned David Hanbury, an analyst at Resource Capital Investments (ResCap). He argued that the situation in Mongolia may appear to some as a “fad,” but this academic dialogue could do very real harm to the country's economy if investors lose interest.

“Mongolia’s growth prospects are already underwritten,” said Hanbury. “The prospect of a new world class mining 'find' only sweetens the story.”

In 2011, Mongolia's economic growth proved to investor interested in the nation that it is more than a fad. Mongolia's GDP grew 17 percent and government spending remains fiscally responsible with a 7 percent surplus this year so far. The Mongolian Stock Exchange is evolving with help from the London Stock Exchange. Contemporary technology will be introduced allowing electronic trading by December this year. The Mongolian tugrug remains strong, having appreciated 9 percent this year against the U.S. dollar. Both the Tavan Tolgoi and Oyu Tolgoi projects promise enormous success for the country and will be fully operating within 12 months.