Mongolia:
Economy

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Other pages in this profile of Mongolia:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Economic activity in Mongolia has traditionally been based on herding and agriculture. Mongolia 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 and 1991 at the time of the dismantlement of the USSR. The following decade saw Mongolia endure both deep recession due to political inaction and natural disasters, as well as economic growth because of reform-embracing, free-market economics and extensive privatization of the formerly state-run economy. Severe winters and summer droughts in 2000-02 resulted in massive livestock die-off and zero or negative GDP growth. This was compounded by falling prices for Mongolia's primary sector exports and widespread opposition to privatization. Growth was 10.6% in 2004, 5.5% in 2005, and 7.5% in 2006, largely because of high copper prices and new gold production. Mongolia's economy continues to be heavily influenced by its neighbors. For example, Mongolia purchases 80% of its petroleum products and a substantial amount of electric power from Russia, leaving it vulnerable to price increases. China is Mongolia's chief export partner and a main source of the "shadow" or "grey" economy. The World Bank and other international financial institutions estimate the grey economy to be at least equal to that of the official economy, but the former's actual size is difficult to calculate since the money does not pass through the hands of tax authorities or the banking sector. Remittances from Mongolians working abroad both legally and illegally are sizable, and money laundering is a growing concern. Mongolia settled its $11 billion debt with Russia at the end of 2003 on favorable terms. Mongolia, which joined the World Trade Organization in 1997, seeks to expand its participation and integration into Asian regional economic and trade regimes.
GDP (purchasing power parity)	$5.852 billion (2006 est.)
GDP (official exchange rate)	$1.54 billion (2006 est.)
GDP - real growth rate	7.5% according to official estimate (2006 est.)
GDP - per capita	$2,100 (2006 est.)
GDP - composition by sector	agriculture: 21.7% industry: 27.9% services: 50.4% (2003 est.)
Labor force	1.577 million (2005)
Labor force - by occupation	agriculture: 39.9% industry: 31.4% services: 28.7% (2005)
Unemployment rate	3.3% (2005)
Population below poverty line	36.1% (2004)
Household income or consumption by percentage share	lowest 10%: 3% highest 10%: 24.6% (2002)
Distribution of family income - Gini index	32.8 (2002)
Inflation rate (consumer prices)	9.5% (2005 est.)
Budget	revenues: $695.3 million expenditures: $634.5 million (2005)
Agriculture - products	wheat, barley, vegetables, forage crops; sheep, goats, cattle, camels, horses
Industries	construction and construction materials; mining (coal, copper, molybdenum, fluorspar, tin, tungsten, and gold); oil; food and beverages; processing of animal products, cashmere and natural fiber manufacturing
Electricity - production	3.43 billion kWh (2006)
Electricity - consumption	2.94 billion kWh (2006)
Electricity - exports	15.95 million kWh (2006)
Electricity - imports	125 million kWh (2006)
Oil - production	821.9 bbl/day (2005 est.)
Oil - consumption	11,220 bbl/day (2005 est.)
Oil - exports	821.9 bbl/day (2005 est.)
Oil - imports	12,280 bbl/day (2004 est.)
Oil - proved reserves	0 bbl (1 January 2006)
Natural Gas - production	0 cu m (2005 est.)
Natural Gas - consumption	NA cu m
Natural Gas - exports	0 cu m (2005 est.)
Natural Gas - imports	NA
Exports	$1.064 billion f.o.b. (2005)
Exports - commodities	copper, apparel, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals
Exports - partners	China 71.8%, Canada 11.7%, US 7.3% (2006)
Imports	$1.184 billion c.i.f. (2005)
Imports - commodities	machinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, sugar, tea
Imports - partners	Russia 29.8%, China 29.5%, Japan 11.9% (2006)
Debt - external	$1.38 billion (2005)
Economic aid - recipient	$211.9 million (2005)
Currency (code)	togrog/tugrik (MNT)
Exchange rates	togrogs/tugriks per US dollar - 1,179.6 (2006), 1,205 (2005), 1,185.3 (2004), 1,146.5 (2003), 1,110.3 (2002)
Fiscal year	calendar year

Mongolia: Economy

Mongolia:
Economy