An Overview of the Economy
Over the past 15 years, the Mongolian economy has undergone
major structural changes. The old centrally planned economic system
has been abolished and measures have been taken towards
privatisation, price and trade liberalisation, banking reform, and
a general opening up of the economy. As a result, Mongolia is
currently experiencing an economic boom and a rapidly developing
tourism industry.
The Mongolian economy has suffered a series of setbacks due to a
combination of communist interference from both the People's
Republic of China and the former USSR, natural disasters and the
knock-on effects of the international financial crises. However,
Mongolia has weathered these storms and has a rapidly developing
economy to show for it: GDP growth in 2007 stood at a healthy 9.9%,
up on the 2003-2006 average of 8.7%. Having traditionally been an
economy based on agriculture, the more recent discoveries of
mineral deposits have led to a huge rush to extract them by some of
the world's leading mining companies. As a result, mining is now a
key industry accounting for two thirds of the country's exports in
2007. Foreign Direct Investment into the country increased in 2007
by just over a third to $500 million, two thirds of that amount
being invested into the mining industry.
| statistics |
|
| GDP (PPP) (IMF) (US$Billions) |
8.4 |
| GDP (PPP) (CIA) (US$Billions) |
8.4 |
| GDP Growth (IMF) (%) |
9.9% |
| GDP Growth (CIA) (%) |
9.9% |
| GDP Per Capita (PPP) (IMF) (US$) |
3,203 |
| GDP Per Capita (PPP) (CIA) (US$) |
3,200 |
| GDP by Sector (%) |
Agriculture: 18.8%
Services: 40.4%
Industry: 40.8% |
| Inflation (%) |
9.0% |
| Population Below the Poverty Line (%) |
36.1% |
| Labour Force (Millions) |
1.042 |
| Labour Force by Occupation (%) |
Agriculture: 39.9%
Services: 49.4%
Industry: 11.7% |
| Unemployment (%) |
3.0% |
| Main Industries |
Construction and construction materials,
mining, oil, food and beverages, processing
of animal products, cashmere and natural
fibre manufacturing. |
GDP
| economic indicators |
2003 |
2004 |
2005 |
2006 |
2007 |
| GDP (US$Billions) |
1.4 |
1.8 |
2.3 |
3.2 |
3.9 |
| GDP Growth (%) |
3.7% |
5.0% |
10.6% |
6.2% |
9.9% |
| GDP Per Capita (US$) |
578 |
716 |
900 |
1,216 |
1,485 |
| GDP Per Capita (PPP) (US$) |
2,163 |
2,163 |
2,396 |
2,600 |
2,875 |
| Inflation (%) |
3.0% |
1.5% |
11.0% |
9.5% |
9.0% |
| Unemployment (%) |
20% |
4.6% |
6.7% |
6.7% |
3.0% |
| Mobile Phone Users |
110,000 |
216,000 |
404,000 |
543,220 |
775,300 |
| Internet Users |
40,000 |
50,000 |
220,000 |
268,300 |
268,300 |
Sources: CIA World Factbook, IMF
Major Exports & Imports
Mongolia is heavily reliant on its powerful neighbours, Russia
and China, within the import/export markets, making it vulnerable
to prices increases and other changes.
major exports 2007
Copper, apparel, livestock, animal products, cashmere, wool,
hides, fluorspar, other nonferrous metals.
major imports 2007
Machinery and equipment, fuel, cars, food products, industrial
consumer goods, chemicals, building materials, sugar, tea.
| export partners |
% of total |
| China |
71.8% |
| Canada |
11.7% |
| US |
7.3% |
| import partners |
% of total |
| Russia |
29.8% |
| China |
29.5% |
| Japan |
11.9% |
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