Mongolia Economy
Is Mongolia a wealthy country?
Despite its small population and landlocked geography, Mongolia's economy has seen significant growth and transformation in recent decades, driven primarily by its mining sector and strategic location as a gateway between Asia's economic powerhouses.
The Mining Boom
Mongolia's economy has been deeply influenced by its abundance of natural resources, particularly coal, copper, gold, and rare earth minerals. The mining sector has experienced a boom in recent years, attracting significant foreign investment and contributing substantially to the country's GDP. Projects such as the Oyu Tolgoi copper-gold mine, operated by multinational companies including Rio Tinto, have become major drivers of economic growth and export revenues.
Challenges and Opportunities
While the mining sector has propelled Mongolia's economic expansion, it also presents challenges and vulnerabilities. The country's heavy reliance on mineral exports makes its economy susceptible to fluctuations in global commodity prices. Moreover, issues such as environmental concerns, infrastructure deficits, and regulatory uncertainties have posed challenges to sustainable mining development.
To mitigate these challenges and diversify its economy, Mongolia has been actively pursuing economic reforms and seeking to attract investment in other sectors such as agriculture, tourism, and renewable energy. Efforts to improve infrastructure, enhance governance, and strengthen institutions are crucial for fostering a more resilient and inclusive economy.
Strategic Positioning
Mongolia's strategic location between China and Russia offers unique opportunities for trade and investment. As China continues to expand its Belt and Road Initiative, Mongolia stands to benefit from increased connectivity and trade linkages with its neighbors. Moreover, initiatives such as the Asian Infrastructure Investment Bank (AIIB) and the China-Mongolia-Russia Economic Corridor provide avenues for regional cooperation and economic integration.
Challenges Ahead
Despite its economic potential, Mongolia faces several challenges on its path to sustainable development. Income inequality, especially between urban and rural areas, remains a pressing issue, requiring targeted policies to promote inclusive growth and poverty reduction. Moreover, the country's dependence on natural resources underscores the importance of prudent resource management, environmental protection, and diversification strategies.
Mongolia Economy Data
What is the GDP of Mongolia?
| Currency Name and Code | Mongolia Tughrik (MNT) |
| GDP - Gross Domestic Product (PPP) | $37,600,000,000 (USD) |
| GDP - official exchange rate | $12,410,000,000 (USD) |
| GDP - real growth rate | 3.5% |
| GDP Per Capita | $12,500.00 (USD) |
| GDP by Sector- agriculture | 16.6% |
| GDP by Sector- Industry | 33.1% |
| GDP by Sector- services | 50.3% |
| GDP - composition, by end use |
household consumption: 53.7% government consumption: 11.3% investment in fixed capital: 30% investment in inventories: 5% exports of goods and services: 51.9% imports of goods and services: -51.9% |
| Population Below Poverty Line | 36.1% |
| Inflation Rate | 13% |
| Labor Force | 1,068,000 |
| Labor Force By Occupation- agriculture | 33% |
| Labor Force By Occupation- industry | 10.6% |
| Labor Force By Occupation- services | 56.4% |
| Unemployment Rate | 11.5% |
| Fiscal Year | calendar year |
| Annual Budget | $2,260,000,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | -8.1% |
| Taxes and other revenues - percent of GDP | 31.1% |
| Major Industries | construction materials; mining (coal, copper, molybdenum, fluorspar, and gold); oil; food and beverages; processing of animal products |
| Industrial Growth Rate | 3% |
| Agriculture Products | wheat, barley, potatoes, forage crops, sheep, goats, cattle, camels, horses |
| Exchange Rate per US Dollar | togrog/tugrik (MNT) |
| Child Labor - % of children ages 5-14 | 18% |
| Child Labor - # of children ages 5-14 | 106,203 |
| Commercial Bank Prime Lending Rate | 17.5% |