Mongolia:
Economy

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


Economy - overview	Definition Economic activity in Mongolia has traditionally been based on herding and agriculture. Mongolia has extensive mineral deposits. Copper, coal, gold, molybdenum, fluorspar, uranium, tin, and tungsten account for a large part of industrial production and foreign direct investment. 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 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, 7.5% in 2006, and 9.9% in 2007 largely because of high copper prices and new gold production. Mongolia is experiencing its highest inflation rate in over a decade as consumer prices in 2007 rose 15%, largely because of increased fuel and food costs. Mongolia's economy continues to be heavily influenced by its neighbors. For example, Mongolia purchases 95% of its petroleum products and a substantial amount of electric power from Russia, leaving it vulnerable to price increases. Trade with China represents more than half of Mongolia's total external trade - China receives about 70% of Mongolia's exports. 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)	Definition - World rank and map $8.42 billion (2007 est.)
GDP (official exchange rate)	Definition $3.905 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 9.9% (2007 est.)
GDP - per capita	Definition - World rank and map $3,200 (2007 est.)
GDP - composition by sector	Definition agriculture: 18.8% industry: 40.4% services: 40.8% (2006)
Labor force	Definition 1.042 million (2006)
Labor force - by occupation	Definition agriculture: 39.9% industry: 11.7% services: 49.4% (2006)
Unemployment rate	Definition - World rank and map 3% (2007)
Population below poverty line	Definition 36.1% (2004)
Household income or consumption by percentage share	Definition lowest 10%: 3% highest 10%: 24.6% (2002)
Distribution of family income - Gini index	Definition - World rank and map 32.8 (2002)
Inflation rate (consumer prices)	Definition - World rank and map 9% (2007)
Budget	Definition revenues: $1.58 billion expenditures: $1.497 billion (2007)
Agriculture - products	Definition wheat, barley, vegetables, forage crops; sheep, goats, cattle, camels, horses
Industries	Definition 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
Industrial production growth rate	Definition - World rank and map 3% (2006 est.)
Electricity - production	Definition - World rank and map 3.43 billion kWh (2006)
Electricity - consumption	Definition - World rank and map 2.94 billion kWh (2006)
Electricity - consumption per capita	Definition - World rank and map 981.3 kWh (2006)
Electricity - exports	Definition 15.95 million kWh (2006)
Electricity - imports	Definition 125 million kWh (2006)
Oil - production	Definition - World rank and map 0 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 12,000 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 4 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 821.9 bbl/day (2005 est.)
Oil - imports	Definition - World rank and map 12,280 bbl/day (2004 est.)
Oil - proved reserves	Definition - World rank and map 0 bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 0 cu m (2005)
Natural gas - consumption per capita	Definition - World rank and map 0 cu m (2005)
Natural gas - exports	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - imports	Definition - World rank and map 0 cu m (2005)
Natural gas - proved reserves	Definition - World rank and map 0 cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$23 million (2007 est.)
Exports	Definition - World rank and map $1.889 billion f.o.b. (2007)
Exports - commodities	Definition copper, apparel, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals
Exports - partners	Definition China 72.7%, Canada 11%, US 4.7% (2006)
Imports	Definition - World rank and map $2.117 billion c.i.f. (2007)
Imports - commodities	Definition machinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, sugar, tea
Imports - partners	Definition China 31.6%, Russia 29.6%, Japan 7.4% (2006)
Debt - external	Definition - World rank and map $1.438 billion (2007)
Stock of direct foreign investment - at home	Definition $NA
Stock of direct foreign investment - abroad	Definition $NA
Market value of publicly traded shares	Definition $613.3 million (2007)
Economic aid - recipient	Definition $159.5 million (2006)
Currency (code)	Definition togrog/tugrik (MNT)
Exchange rates	Definition togrogs/tugriks per US dollar - 1,170 (2007), 1,179.6 (2006), 1,205 (2005), 1,185.3 (2004), 1,146.5 (2003)
Fiscal year	Definition calendar year

Mongolia: Economy

Mongolia:
Economy