Economy of Mongolia

Mother Earth Travel > Country Index > Mongolia > Map Economy History

Economy - overview: Economic activity traditionally has been based on agriculture and breeding of livestock. Mongolia also has extensive mineral deposits: copper, coal, molybdenum, tin, tungsten, and gold account for a large part of industrial production. Soviet assistance, at its height one-third of GDP, disappeared almost overnight in 1990-91, at the time of the dismantlement of the USSR. Mongolia was driven into deep recession, which was prolonged by the Mongolian People's Revolutionary Party's (MPRP) reluctance to undertake serious economic reform. The Democratic Coalition (DC) government has embraced free-market economics, easing price controls, liberalizing domestic and international trade, and attempting to restructure the banking system and the energy sector. Major domestic privatization programs were undertaken, as well as the fostering of foreign investment through international tender of the oil distribution company, a leading cashmere company, and banks. Reform was held back by the ex-communist MPRP opposition and by the political instability brought about through four successive governments under the DC. Economic growth picked up in 1997-99 after stalling in 1996 due to a series of natural disasters and declines in world prices of copper and cashmere. In August and September 1999, the economy suffered from a temporary Russian ban on exports of oil and oil products, and Mongolia remains vulnerable in this sector. Mongolia joined the World Trade Organization (WTrO) in 1997. The international donor community pledged over $300 million per year at the last Consultative Group Meeting, held in Ulaanbaatar in June 1999. The MPRP government, elected in July 2000, is anxious to improve the investment climate; it must also deal with a heavy burden of external debt.

GDP: purchasing power parity - $4.7 billion (2000 est.)
GDP - real growth rate: -1% (2000 est.)
GDP - per capita: purchasing power parity - $1,780 (2000 est.)
GDP - composition by sector:
agriculture:  36%
industry:  22%
services:  42% (2000 est.)
Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 24.5% (1995)
Inflation rate (consumer prices): 7.6% (1999)
Labor force: 1.3 million (1999)
Labor force - by occupation: primarily herding/agricultural
Unemployment rate: 4.5% (1998)
Budget:
revenues:  $262 million
expenditures:  $328 million (2000 est.)
Industries: construction materials, mining (particularly coal and copper); food and beverages, processing of animal products
Industrial production growth rate: 2.4% (2000 est.)
Electricity - production: 2.671 billion kWh (1999)
Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1999)
Electricity - consumption: 2.767 billion kWh (1999)
Agriculture - products: wheat, barley, potatoes, forage crops; sheep, goats, cattle, camels, horses
Exports: $454.3 million (f.o.b., 1999)
Exports - commodities: copper, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals
Exports - partners: China 60%, US 20%, Russia 9%, Japan 2% (2000 est.)
Imports: $510.7 million (c.i.f., 1999)
Imports - commodities: machinery and equipment, fuels, food products, industrial consumer goods, chemicals, building materials, sugar, tea
Imports - partners: Russia 33%, China 21%, Japan 12%, South Korea 10%, US 4% (1999)
Debt - external: $760 million (2000 est.)
Economic aid - recipient: $200 million (1998 est.)
Currency: togrog/tugrik (MNT)

SOURCE: The World Factbook

Mother Earth Travel > Country Index > Mongolia > Map Economy History