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Mongolia Economy Profile 2018

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Economy - overviewForeign direct investment in Mongolia's extractive industries – which are based on extensive deposits of copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten - has transformed Mongolia's landlocked economy from its traditional dependence on herding and agriculture. Exports now account for more than 40% of GDP. Mongolia depends on China for more than 60% of its external trade - China receives some 90% of Mongolia's exports and supplies Mongolia with more than one-third of its imports. Mongolia also relies on Russia for 90% of its energy supplies, leaving it vulnerable to price increases. Remittances from Mongolians working abroad, particularly in South Korea, are significant.

Soviet assistance, at its height one-third of GDP, disappeared almost overnight in 1990 and 1991 at the time of the dismantlement of the USSR. The following decade saw Mongolia endure both deep recession, because of political inaction, and natural disasters, as well as strong economic growth, because of market reforms and extensive privatization of the formerly state-run economy. The country opened a fledgling stock exchange in 1991. Mongolia joined the WTO in 1997 and seeks to expand its participation in regional economic and trade regimes.

Growth averaged nearly 9% per year in 2004-08 largely because of high copper prices globally and new gold production. By late 2008, Mongolia was hit by the global financial crisis and Mongolia's real economy contracted 1.3% in 2009. In early 2009, the IMF reached a $236 million Stand-by Arrangement with Mongolia and it emerged from the crisis with a stronger banking sector and better fiscal management. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi (OT) mine, among the world's largest untapped copper-gold deposits. However, a dispute with foreign investors developing OT called into question the attractiveness of Mongolia as a destination for foreign investment. This caused a severe drop in FDI, and a slowing economy, leading to the dismissal of Prime Minister ALTANKHUYAG in November 2014. The economy had grown more than 10% per year between 2011 and 2013 - largely on the strength of commodity exports and high government spending - before slowing to 7.8% in 2014, and falling to the 2% level in 2015 through 2017, even though government spending remained high.

The May 2015 agreement with Rio Tinto to restart the OT mine and the subsequent $4.4 billion finance package signing in December 2015 stemmed the loss of investor confidence. The current government has made restoring investor trust and reviving the economy its top priority, but has failed to invigorate the economy in the face of the large dropoff in foreign direct investment, mounting external debt, and a sizeable budget deficit. However, Mongolia reached staff-level agreement with the IMF in February 2017 on an Extended Fund Facility program, and once approved by the IMF Board, the program is expected to improve Mongolia’s long-term fiscal and economic stability.
GDP (purchasing power parity)$38.4 billion (2017 est.)
$37.63 billion (2016 est.)
$37.27 billion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$10.87 billion (2016 est.)
GDP - real growth rate2% (2017 est.)
1% (2016 est.)
2.4% (2015 est.)
GDP - per capita (PPP)$12,600 (2017 est.)
$12,500 (2016 est.)
$12,600 (2015 est.)
note: data are in 2017 dollars
Gross national saving29.3% of GDP (2017 est.)
25.9% of GDP (2016 est.)
21.1% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 51.9%
government consumption: 13.7%
investment in fixed capital: 21.7%
investment in inventories: 4.1%
exports of goods and services: 70.8%
imports of goods and services: -62.1% (2017 est.)
GDP - composition by sectoragriculture: 13.2%
industry: 36.1%
services: 50.7% (2017 est.)
Population below poverty line21.6% (2014 est.)
Labor force1.24 million (2016 est.)
Labor force - by occupationagriculture: 31.1%
industry: 18.5%
services: 50.5% (2016)
Unemployment rate8% (2017 est.)
7.9% (2016 est.)
Unemployment, youth ages 15-24total: 17.9%
male: 16.8%
female: 19.4% (2015 est.)
Household income or consumption by percentage sharelowest 10%: 13.8%
highest 10%: 8.8% (2016)
Distribution of family income - Gini index36.5 (2008)
32.8 (2002)
Budgetrevenues: $2.623 billion
expenditures: $3.711 billion (2017 est.)
Taxes and other revenues24.1% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-10% of GDP (2017 est.)
Public debt91.4% of GDP (2017 est.)
90% of GDP (2016 est.)
Inflation rate (consumer prices)4.4% (2017 est.)
0.6% (2016 est.)
Central bank discount rate12% (14 January 2016 )
13% (15 January 2015)
Commercial bank prime lending rate19.9% (31 December 2017 est.)
19.74% (31 December 2016 est.)
Stock of narrow money$1.109 billion (31 December 2017 est.)
$839.6 million (31 December 2016 est.)
Stock of broad money$6.257 billion (31 December 2017 est.)
$4.851 billion (31 December 2016 est.)
Stock of domestic credit$9.406 billion (31 December 2017 est.)
$7.326 billion (31 December 2016 est.)
Market value of publicly traded shares$632.6 million (31 December 2015 est.)
$766.1 million (31 December 2014 est.)
$1.095 billion (31 December 2013 est.)
Agriculture - productswheat, barley, vegetables, forage crops; sheep, goats, cattle, camels, horses
Industriesconstruction and construction materials; mining (coal, copper, molybdenum, fluorspar, tin, tungsten, gold); oil; food and beverages; processing of animal products, cashmere and natural fiber manufacturing
Industrial production growth rate6.1% (2017 est.)
Current Account Balance-$532 million (2017 est.)
-$700 million (2016 est.)
Exports$5.676 billion (2017 est.)
$4.804 billion (2016 est.)
Exports - commoditiescopper, apparel, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals, coal, crude oil
Exports - partnersChina 84.1%, UK 6.8% (2016)
Imports$4.196 billion (2017 est.)
$3.466 billion (2016 est.)
Imports - commoditiesmachinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, cigarettes and tobacco, appliances, soap and detergent
Imports - partnersChina 33.2%, Russia 25.6%, South Korea 8.6%, Japan 7% (2016)
Debt - external$22.28 billion (31 December 2017 est.)
$19.79 billion (31 December 2016 est.)
Stock of direct foreign investment - at home$19.42 billion (31 December 2017 est.)
$16.28 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad$475.2 million (31 December 2017 est.)
$455.2 million (31 December 2016 est.)
Exchange ratestogrog/tugriks (MNT) per US dollar -
2,378.1 (2017 est.)
2,140.3 (2016 est.)
2,140.3 (2015 est.)
1,970.3 (2014 est.)
1,817.9 (2013 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on January 20, 2018

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