Economy Of Mongolia

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, prolonged by the Mongolian People's Revolutionary Party's (MPRP) reluctance to undertake serious economic reform. The Democratic Union Coalition (DUC) government embraced free-market economics, eased price controls, liberalized domestic and international trade, and attempted 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 DUC. 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 Consultative Group Meeting, held in Ulaanbaatar in June 1999. The MPRP government, elected in July 2000, was anxious to improve the investment climate; it also had to deal with a heavy burden of external debt. Falling prices for Mongolia's mainly primary sector exports, widespread opposition to privatization, and adverse effects of weather on agriculture in early 2000 and 2001 restrained real GDP growth. Despite drought problems in 2002, GDP rose 4.0%, followed by a solid 5.0% increase in 2003. The first applications under the land privatization law have been marked by a number of disputes over particular sites. Russia claims Mongolia owes it $11 billion from the Soviet period; any settlement could substantially increase Mongolia's foreign debt burden.
GDP	purchasing power parity - $4.882 billion (2004 est.)
GDP - real growth rate	5% (2004 est.)
GDP - per capita	purchasing power parity - $1,800 (2004 est.)
GDP - composition by sector	agriculture: 20.6% industry: 21.4% services: 58% (2002 est.)
Investment gross fixed
Population below poverty line	33% (2003 est.)
Household income or consumption by percentage share	lowest 10%: 2.1% highest 10%: 37% (1995)
Distribution of family income - Gini index	44 (1998)
Inflation rate consumer prices	1.5% (2002 est.)
Labor force	1.4 million (2001)
Labor force by occupation	herding/agriculture 46%, manufacturing 6%, trade 10.3%, public sector 4.7%, other/unemployed 33% (2001)
Unemployment rate	4.6% (2001)
Budget	revenues: $387 million expenditures: $428 million, including capital expenditures of NA (2001 est.)
Public debt
Agriculture products	wheat, barley, potatoes, forage crops, sheep, goats, cattle, camels, horses
Industries	construction materials; mining (coal, copper, molybdenum, fluorspar, and gold); oil; food and beverages; processing of animal products
Industrial production growth rate	4.1% (2002 est.)
Electricity production	2.225 billion kWh (2001)
Electricity production by source	fossil fuel: 100% hydro: 0% other: 0% (2001) nuclear: 0%
Electricity consumption	2.194 billion kWh (2001)
Electricity exports	25 million kWh (2001)
Electricity imports	196 million kWh (2001)
Oil production	0 bbl/day (2001 est.)
Oil consumption	8,750 bbl/day (2001 est.)
Oil exports	NA (2001)
Oil imports	NA (2001)
Oil proved reserves
Natural gas production
Natural gas consumption
Natural gas exports
Natural gas imports
Natural gas proved reserves
Current account balance
Exports	$524 million f.o.b. (2002 est.)
Exports commodities	copper, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals
Exports partners	China 46.1%, US 23.2%, Russia 6.7%, Singapore 5.7%, Australia 5.5%, UK 4.2% (2003)
Imports	$691 million c.i.f. (2002 est.)
Imports commodities	machinery and equipment, fuels, food products, industrial consumer goods, chemicals, building materials, sugar, tea
Imports partners	Russia 33.1%, China 21.5%, South Korea 8.5%, Japan 7.9%, Germany 4.7% (2003)
Reserves of foreign exchange gold
Debt external	$885 million (2001 est.)
Economic aid recipient	$332 million (2003 est.)
Currency	togrog/tugrik (MNT)
Currency code	MNT
Exchange rates	togrogs/tugriks per US dollar - 1,171 (2003), 1,110.31 (2002), 1,097.7 (2001), 1,076.67 (2000), 1,021.87 (1999)
Fiscal year	calendar year

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This information was reproduced in part from the CIA World Fact book.

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