This article needs to be updated.(September 2024) |
Currency | Mongolian tögrög (MNT, ₮) |
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Calendar year | |
Trade organizations | WTO, IMF, World Bank, ADB, SCO (Observer) |
Country group |
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Statistics | |
Population | 3,49 million (2024 est.) [3] |
GDP | |
GDP rank | |
GDP growth |
|
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
| |
Population below poverty line | |
32.7 medium (2018) [8] | |
Labor force by occupation |
|
Unemployment | |
Main industries | construction and construction materials, mining (coal, copper, molybdenum, fluorspar, tin, tungsten, and gold), oil, food and beverages, processing of animal products, cashmere wool and natural fiber manufacturing |
External | |
Exports | $12.65 billion (2023 est.) [5] |
Export goods | copper, apparel, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals, coal, crude oil |
Main export partners |
|
Imports | $4.345 billion (2017 est.) [5] |
Import goods | machinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, cigarettes and tobacco, appliances, soap and detergent |
Main import partners | |
FDI stock | |
−$1.155 billion (2017 est.) [5] | |
Gross external debt | $33.8% billion (2023 est.) [5] |
Public finances | |
180.3% of GDP (2023 est.) [5] | |
−6.4% (of GDP) (2017 est.) [5] | |
Revenues | 2.967 billion (2017 est.) [5] |
Expenses | 3.681 billion (2017 est.) [5] |
Economic aid | $185.94 million (2008) |
Standard & Poor's: [14] BB- (Domestic) BB- (Foreign) BB (T&C Assessment) Outlook: Stable [15] Moody's: B1 Outlook: Stable Fitch: [15] B+ Outlook: Stable | |
$3.016 billion (31 December 2017 est.) [5] | |
All values, unless otherwise stated, are in US dollars. |
The economy of Mongolia has traditionally been based on agriculture and 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 Gross domestic product (GDP), disappeared almost overnight in 1990–91, in the time of the collapse of the Soviet Union. Mongolia was driven into deep recession.
Economic growth picked up in 1997–99 after stalling in 1996 due to a series of natural disasters and increases in world prices of copper and cashmere. Public revenues and exports collapsed in 1998 and 1999 due to the repercussions of the Asian financial crisis. In August and September 1999, the economy suffered from a temporary Russian ban on exports of oil and oil products. Mongolia joined the World Trade Organization (WTO) in 1997. [16] The international donor community pledged over $300 million per year in the last Consultative Group Meeting, held in Ulaanbaatar in June 1999. Recently, the Mongolian economy has grown at a fast pace due to an increase in mining and Mongolia attained a GDP growth rate of 11.7% in 2013. [17] However, because much of this growth is export-based, Mongolia is suffering from the global slowdown in mining caused by decreased growth in China. [18]
The rapid political changes of 1990–91 marked the beginning of Mongolia's efforts to develop a market economy, but these efforts have been complicated and disrupted by the dissolution and continuing deterioration of the economy of the former Soviet Union. Prior to 1991, 80% of Mongolia's trade was with the former Soviet Union, and 15% was with other Council for Mutual Economic Assistance (CMEA) countries. Mongolia was heavily dependent upon the former Soviet Union for fuel, medicine, and spare parts for its factories and power plants.[ citation needed ]
The former Soviet Union served as the primary market for Mongolian industry. In the 1980s, Mongolia's industrial sector became increasingly important. By 1989, it accounted for an estimated 34% of material products, compared to 18% from agriculture. However, minerals, animals, and animal-derived products still constitute a large proportion of the country's exports. Principal imports included machinery, petroleum, cloth, and building materials.
In the late 1980s, the government began to improve links with non-communist Asia and the West, and tourism in Mongolia developed. As of 1 January 1991, Mongolia and the former Soviet Union agreed to conduct bilateral trade in hard currency at world prices.
Despite its external trade difficulties, Mongolia has continued to press ahead with reform. Privatization of small shops and enterprises has largely been completed in the 1990s, and most prices have been freed. Privatization of large state enterprises has begun. Tax reforms also have begun, and the barter and official exchange rates were unified in late 1991.
Between 1990 and 1993, Mongolia suffered triple-digit inflation, rising unemployment, shortages of basic goods, and food rationing. During that period, economic output contracted by one-third. As market reforms and private enterprise took hold, economic growth began again in 1994–95. Unfortunately, since this growth was fueled in part by over-allocation of bank credit, especially to the remaining state-owned enterprises, economic growth was accompanied by a severe weakening of the banking sector. GDP grew by about 6% in 1995, thanks to largely to a boom in copper prices. Average real economic growth leveled off to about 3.5% in 1996–99 due to the Asian financial crisis, the 1998 Russian financial crisis, and worsening commodity prices, especially copper and gold.
Mongolia's gross domestic product (GDP) growth fell from 3.2% in 1999 to 1.3% in 2000. The decline can be attributed to the loss of 2.4 million livestock in bad weather and natural disasters in 2000. Prospects for development outside the traditional reliance on nomadic, livestock-based agriculture are constrained by Mongolia's landlocked location and lack of basic infrastructure. Since 1990, more than 1,500 foreign companies from 61 countries have invested[ when? ] a total of $338.3 million in Mongolia. By 2003 private companies made up 70% of Mongolian GDP and 80% of exports. [19]
Until recently, there have been a very few restrictions on foreign investments during most of Mongolia's post-socialist period. Consequently, mining industry's contribution to FDI increased to almost 25% in 1999 from zero in 1990. [20]
Mongolia's reliance on trade with China meant that the worldwide financial crisis hit hard, [21] severely stunting the growth of its economy. With the sharp decrease in metal prices, especially copper (down 65% from July 2008-February 2009), [21] exports of its raw materials withered and by 2009 the stock market MSE Top-20 registered an all-time low since its dramatic spike in mid-2007. [22] Just as the economy started to recover, Mongolia was hit by a Zud over the winter period of 2009–2010, causing many livestock to perish and thus severely affecting cashmere production which accounts for a further 7% of the country's export revenues. [21]
According to the World Bank and International Monetary Fund estimates, real GDP growth reduced from 8% to 2.7% in 2009, and exports shrunk 26% from $2.5Bn to $1.9Bn before a promisingly steady increase up until 2008. [21] Because of this, it was projected that between 20,000 and 40,000 fewer Mongolians (0.7% and 1.4% of the population respectively) will be lifted out of poverty, than would have been the case without the global financial crisis.
In late 2009 and the beginning of 2010, however, the market has begun to recover once again. Having identified and learnt from its previous economic instabilities, legislative reform and a tightened fiscal policy promises to guide the country onwards and upwards. In February 2010, foreign assets were recorded at USD1,569,449 million. [23] New trade agreements are being formed and foreign investors are keeping a close eye on the "Asian Wolf".
Mining is the principal industrial activity in Mongolia, making up 30% of all Mongolian industry. [24] Another important industry is the production of cashmere. Mongolia is the world's second largest producer of cashmere, with the main company, Gobi Cashmere, accounting for 21% of world cashmere production as of 2006. [25]
Total export in 2019 was US$7.6 billion. [26]
The 2022 economic growth is expected to be one percent and international institutions anticipate the economy to speed up by at least six percent in 2023 from expanded commodity exports. [27] A significant commodity export boom is expected starting from 2023 with new coal rail networks Error in Webarchive template: Empty url. to China coming online and increased copper production from Rio Tinto’s underground mine Oyu Tolgoi in southern Mongolia.
In early 2020s, Mongolia's economy, though experiencing growth spurred by natural resource exports, faces challenges. Over-reliance on mining, rising debt, inflation, and potential fuel supply disruptions from Russia pose risks to the country's economic stability despite government efforts in infrastructure and social programs. [28]
The term was coined by Ganhuyag Chuluun Hutagt and subsequently popularized by Renaissance Capital in their report "Mongolia: "Blue-sky opportunity". [29] They state that Mongolia is set to become the new Asian tiger, or "Mongolian wolf" as they prefer to call it, and predict "unstoppable" economic growth. [30] With the recent developments in the mining industry and foreign interest increasing at an astonishing rate, it is claimed that the 'Wolf Economy' looks ready to pounce. The term's aggressive title mirrors the country's attitude in the capital markets, and with newfound mineral prospects it has the chance to retain its title as one of the world's fastest growing economies. [31]
The banking sector is highly concentrated, with five banks controlling about 80% of financial assets as of 2015: [32] Shares of Mongolia's five largest domestic banks are to be offered to the public for the first time on the soon-to-be partially privatized Mongolian Stock Exchange. [33]
In terms of access to credit, Mongolia ranked 61st out of 189 economies in accordance with 2015 Ease of Doing Business survey. [36] However, Mongolia had one of the highest banking branch penetration rates in the world at 1 bank branch per 15,257 residents as of May 2015. [32]
With a strengthening capital market environment, many foreign and local investment institutions have begun to establish themselves in Mongolia. The most prominent local agencies include: TDB Capital Archived 31 December 2019 at the Wayback Machine , Eurasia Capital, Monet Investment Bank, BDSec, MICC Archived 18 August 2020 at the Wayback Machine , and Frontier Securities.
As a result of rapid urbanization and industrial growth policies under the communist regime, Mongolia's deteriorating environment has become a major concern. The burning of soft coal coupled with thousands[ citation needed ] [37] of factories in Ulaanbaatar and a sharp increase in individual motorization [38] has resulted in severe air pollution. Deforestation, overgrazed pastures, and, less recently, efforts to increase grain and hay production by plowing up more virgin land have increased soil erosion from wind and rain.
The following table shows the main economic indicators in 2007–2022. [39] [ full citation needed ]
Year | GDP (in bil. US$ PPP) | GDP per capita (in US$ PPP) | GDP (in bil. US$ nominal) | GDP growth in percentage (real) | Inflation in percentage (in Percent) |
---|---|---|---|---|---|
2007 | 17.5 | 6,841 | 4.2 | 8.8 | 17.8 |
2008 | 19.3 | 7,250 | 5.6 | 7.8 | 22.1 |
2009 | 19.0 | 6,969 | 4.6 | -2.1 | 4.2 |
2010 | 20.6 | 7,357 | 7.2 | 7.3 | 12.9 |
2011 | 24.7 | 8,474 | 10.4 | 17.3 | 8.9 |
2012 | 28.9 | 9,332 | 12.3 | 12.3 | 14.1 |
2013 | 30.4 | 10,197 | 12.6 | 11.6 | 12.5 |
2014 | 32.5 | 10,760 | 12.2 | 7.9 | 10.4 |
2015 | 31.9 | 10,796 | 11.6 | 2.4 | 1.0 |
2016 | 32.8 | 10,739 | 11.2 | 1.5 | 1.3 |
2017 | 35.4 | 11,137 | 11.5 | 5.6 | 6.3 |
2018 | 39.0 | 11,775 | 13.2 | 7.7 | 8.2 |
2019 | 42.0 | 12,215 | 14.2 | 5.6 | 5.2 |
2020 | 40.5 | 11,447 | 13.3 | -4.6 | 2.3 |
2021 | 42.9 | 11,456 | 15.3 | 1.6 | 13.5 |
2022 | 47.1 | 11,567 | 17.1 | 2.5 | 14.2 |
Household income or consumption by percentage share:
Distribution of family income - Gini index: 40 (2000)
Agriculture - products: wheat, barley, vegetables, forage crops, sheep, goats, cattle, camels, horses
Industries: construction and construction materials; mining (coal, copper, molybdenum, fluorspar, and gold); food and beverages; processing of animal products, cashmere wool and natural fiber manufacturing
Industrial production growth rate: 6% (2010 est.)
Electricity:
Electricity - production by source:
Oil:
Exports - commodities: copper, apparel, livestock, animal products, cashmere wool, hides, fluorspar, other nonferrous metals
Imports - commodities: machinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, sugar, tea
Exchange rates: tögrögs/tugriks per US dollar: 1890 (2014), 1396 (2012), 1,420 (2009), 1,179.6 (2006), 1,205 (2005), 1,187.17 (2004), 1,171 (2003), 1,110.31 (2002), 1,097.7 (2001), 1,076.67 (2000)
The economy of Chad suffers from the landlocked country's geographic remoteness, drought, lack of infrastructure, and political turmoil. About 85% of the population depends on agriculture, including livestock herding. Of Africa's Francophone countries, Chad benefited least from the 50% devaluation of their currencies in January 1994. Financial aid from the World Bank, the African Development Bank, and other sources is directed mainly at improving agriculture, especially livestock production. Because of a lack of financing, the development of oil fields near Doba, originally due to finish in 2000, was delayed until 2003. It was finally developed and is now operated by ExxonMobil. Regarding gross domestic product, Chad ranks 147th globally with $11.051 billion as of 2018.
The economy of the Dominican Republic is the seventh largest in Latin America, and is the largest in the Caribbean and Central American region. The Dominican Republic is an upper-middle income developing country with important sectors including mining, tourism, manufacturing, energy, real estate, infrastructure, telecommunications and agriculture. The Dominican Republic is on track to achieve its goal of becoming a high-income country by 2030, and is expected to grow 79% in this decade. The country is the site of the single largest gold mine in Latin America, the Pueblo Viejo mine. Although the service sector is currently the leading employer of Dominicans, agriculture remains an important sector in terms of the domestic market and is in second place in terms of export earnings. Tourism accounts for more than $7.4 billion in annual earnings in 2019. Free-trade zone earnings and tourism are the fastest-growing export sectors. A leading growth engine in the Free-trade zone sector is the production of medical equipment for export having a value-added per employee of US$20,000, total revenue of US$1.5 billion, and a growth rate of 7.7% in 2019. The medical instrument export sector represents one of the highest-value added sectors of the country's economy, a true growth engine for the country's emerging market. Remittances are an important sector of the economy, contributing US$8.2 billion in 2020. Most of these funds are used to cover household expenses, such as housing, food, clothing, health care and education. Secondarily, remittances have financed businesses and productive activities. Thirdly, this combined effect has induced investment by the private sector and helps fund the public sector through its value-added tax. The combined import market including the free-trade-zones amounts to a market of $20 billion a year in 2019. The combined export sector had revenues totaling $11 billion in 2019. The consumer market is equivalent to $61 billion in 2019. An important indicator is the average commercial loan interest rate, which directs short-term investment and stimulates long-term investment in the economy. It is currently 8.30%, as of June 2021.
The economy of Gabon is characterized by strong links with France, large foreign investments, dependence on skilled foreign labor, and decline of agriculture. Gabon on paper enjoys a per capita income four times that of most nations of Africa, but its reliance on resource extraction industry fail to release much of the population from extreme poverty, as much of 30% of the population lives under the poverty threshold.
The economy of Kyrgyzstan is heavily dependent on the agricultural sector. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported in any quantity. According to Healy Consultants, Kyrgyzstan's economy relies heavily on the strength of industrial exports, with plentiful reserves of gold, mercury and uranium. The economy also relies heavily on remittances from foreign workers. Following independence, Kyrgyzstan was progressive in carrying out market reforms, such as an improved regulatory system and land reform. In 1998, Kyrgyzstan was the first Commonwealth of Independent States (CIS) country to be accepted into the World Trade Organization. Much of the government's stock in enterprises has been sold. Kyrgyzstan's economic performance has been hindered by widespread corruption, low foreign investment and general regional instability. Despite those issues, Kyrgyzstan is ranked 70th on the ease of doing business index.
The economy of Laos is a lower-middle income developing economy. Being a socialist state, the Lao economic model resembles the Chinese socialist market and/or Vietnamese socialist-oriented market economies by combining high degrees of state ownership with openness to foreign direct investment and private ownership in a predominantly market-based framework.
The economy of Malawi is $7.522 billion by gross domestic product as of 2019, and is predominantly agricultural, with about 80% of the population living in rural areas. The landlocked country in south central Africa ranks among the world's least developed countries and poorest countries. Approximately 50% of the population lives below the national poverty line, with 25% living in extreme poverty.
The economy of Mali is based to a large extent upon agriculture, with a mostly rural population engaged in subsistence agriculture.
The economy of Nepal is a developing category and is largely dependent on agriculture and remittances. Until the mid-20th century Nepal was an isolated pre-industrial society, which entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or civil service. The country has, however, made progress toward sustainable economic growth since the 1950s. The country was opened to economic liberalization, leading to economic growth and improvement in living standards when compared to the past. The biggest challenges faced by the country in achieving higher economic development are the frequent changes in political leadership, as well as corruption. Nepal has consistently been ranked as one of the poorest countries in the world.
The economy of Nicaragua is focused primarily on the agricultural sector. Nicaragua itself is the least developed country in Central America, and the second least developed in the Americas by nominal GDP, behind only Haiti. In recent years, under the administrations of Daniel Ortega, the Nicaraguan economy has expanded somewhat, following the Great Recession, when the country's economy actually contracted by 1.5%, due to decreased export demand in the American and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth. The economy saw 4.5% growth in 2010 thanks to a recovery in export demand and growth in its tourism industry. Nicaragua's economy continues to post growth, with preliminary indicators showing the Nicaraguan economy growing an additional 5% in 2011. Consumer Price inflation have also curtailed since 2008, when Nicaragua's inflation rate hovered at 19.82%. In 2009 and 2010, the country posted lower inflation rates, 3.68% and 5.45%, respectively. Remittances are a major source of income, equivalent to 15% of the country's GDP, which originate primarily from Costa Rica, the United States, and European Union member states. Approximately one million Nicaraguans contribute to the remittance sector of the economy.
The gross domestic product (GDP) of Niger was $16.617 billion US dollars in 2023, according to official data from the World Bank. This data is based largely on internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs to neighbors and raw minerals to world markets. Niger, a landlocked West African nation that straddles the Sahel, has consistently been ranked on the bottom of the Human Development Index, at 0.394 as of 2019. It has a very low per capita income, and ranks among the least developed and most heavily indebted countries in the world, despite having large raw commodities and a relatively stable government and society not currently affected by civil war or terrorism. Economic activity centers on subsistence agriculture, animal husbandry, re-export trade, and export of uranium.
The economy of the Republic of the Congo is a mixture of subsistence hunting and agriculture, an industrial sector based largely on petroleum extraction and support services. Government spending is characterized by budget problems and overstaffing. Petroleum has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. Nowadays the Republic of the Congo is increasingly converting natural gas to electricity rather than burning it, greatly improving energy prospects.
Once a single-crop agricultural economy, Saint Lucia has shifted to a tourism and banking serviced-based economy. Tourism, the island's biggest industry and main source of jobs, income and foreign exchange, accounts for 65% of its GDP. Agriculture, which was once the biggest industry, now contributes to less than 3% of GDP, but still accounts for 20% of jobs. The banana industry is now on a decline due to strong competition from low-cost Latin American producers and reduced European trade preferences, but the government has helped revitalize the industry, with 13,734 tonnes exported in 2018. Agricultural crops grown for export are bananas, mangoes, and avocados. The island is considered to have the most diverse and well-developed manufacturing industry in the eastern Caribbean.
The economy of Senegal is driven by mining, construction, tourism, fishing and agriculture, which are the main sources of employment in rural areas, despite abundant natural resources in iron, zircon, gas, gold, phosphates, and numerous oil discoveries recently. Senegal's economy gains most of its foreign exchange from fish, phosphates, groundnuts, tourism, and services. As one of the dominant parts of the economy, the agricultural sector of Senegal is highly vulnerable to environmental conditions, such as variations in rainfall and climate change, and changes in world commodity prices.
The economy of Sierra Leone is $7.41 billion by gross domestic product as of 2024. Since the end of the Sierra Leone Civil War in 2002, the economy is gradually recovering with a gross domestic product growth rate between 4 and 7%. In 2008 it in PPP ranked between 147th by World Bank, and 153rd by CIA, largest in the world.
The economy of Tanzania is a lower-middle income economy that is centered around Manufacturing, Tourism, Agriculture, and financial services. Tanzania's economy has been transitioning from a planned economy to a market economy since 1985. Although total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.
The economy of Guyana is one of the fastest growing economies in the world with a gross domestic product (GDP) growth of 19.9% in 2021. In 2024, Guyana had a per capita gross domestic product of Int$80,137 and an average GDP growth of 4.2% over the previous decade. Guyana's economy was transformed in 2015 with the discovery of an offshore oil field in the country's waters about 190 km from Georgetown, making the first commercial-grade crude oil draw in December 2019, sending it abroad for refining.
The economy of Papua New Guinea (PNG) is largely underdeveloped with the vast majority of the population living below the poverty line. However, according to the Asian Development Bank its GDP is expected to grow 3.4% in 2022 and 4.6% in 2023. It is dominated by the agricultural, forestry, and fishing sector and the minerals and energy extraction sector. The agricultural, forestry, and fishing sector accounts for most of the labour force of PNG while the minerals and energy extraction sector, including gold, copper, oil and natural gas is responsible for most of the export earnings.
The economy of the Gambia is heavily reliant on agriculture. The Gambia has no significant mineral or other natural resources, and has a limited agricultural base. About 75% of the population depends on crops and livestock for its livelihood. Small-scale manufacturing activity features the processing of peanuts, fish, and animal hides.
Erdenet is the second-largest city in Mongolia, with a 2018 population of 98,057, and the capital of the aimag (province) of Orkhon. Located in the northern part of the country, it lies in a valley between the Selenge and Orkhon rivers about 240 km (149 mi) northwest of Ulaanbaatar, Darkhan, the capital. The road length between Ulaanbaatar and Erdenet is about 370 km (230 mi).
The economy of Ivory Coast is stable and currently growing, in the aftermath of political instability in recent decades. The Ivory Coast's economy is largely market-based and depends heavily on the agricultural sector. Almost 70% of the Ivorian people are engaged in some form of agricultural activity. The economy grew 82% in the 1960s, reaching a peak growth of 360% in the 1970s, but this proved unsustainable and it shrank by 28% in the 1980s and a further 22% in the 1990s. This decline, coupled with high population growth, resulted in a steady fall in living standards. The gross national product per capita, now rising again, was about US$727 in 1996. It was substantially higher two decades before. Real GDP growth is expected to average 6.5% in 2024–25.
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