Following amendments to the constitution in November 2019, the Mongolian People’s Party (MPP) reformers gained broad-based consensus. In the 2020 parliamentary election, the ruling MPP won 62 out of 76 seats, partly due to a change in the election system from a single-member district plurality system to a multi-member district plurality one.

Despite significant improvements in the government’s fiscal performance, Mongolia experienced its first recession since 2009 due to the COVID-19 pandemic in 2020 and the government’s emergency measures, which resulted in weak external and internal demand. The fiscal balance deteriorated, and government debt increased in 2020.

Even though the government heavily prioritized containment measures and emergency preparedness in the fight against the COVID-19 pandemic, it failed to implement clear and effective crisis management measures in response to the first case of community transmission. Moreover, corruption remains the greatest obstacle to political and socioeconomic progress in Mongolia.

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