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 Coalition (DC) government has embraced free-market economics, easing price controls, liberalizing domestic and international trade, and attempting 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 DC. 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 last Consultative Group Meeting, held in Ulaanbaatar in June 1999. The MPRP government, elected in July 2000, is anxious to improve the investment climate; it must also 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 in 2000-01.

GDP purchasing power parity - $4.7 billion (2001 est.)

GDP - real growth rate 2.4% (2001 est.)

GDP - per capita purchasing power parity - $1,770 (2001 est.)

GDP - composition by sector
agriculture: 32%
industry: 30%
services: 38% (2000 est.)

Population below poverty line 36% (2001 est.)

Household income or consumption by percentage share
lowest 10%: 2.9%
highest 10%: 24.5% (1995)

Distribution of family income - Gini index 33.2 (1995)

Inflation rate (consumer prices) 11.8% (2000 est.)

Labor force 1.4 million (2000)

Labor force - by occupation primarily herding/agricultural

Unemployment rate 20% (2000)

Budget
revenues: $262 million
expenditures: $328 million, including capital expenditures of $NA (2000 est.)

Industries construction materials, mining (coal, copper, molybdenum, fluorspar, and gold); oil; food and beverages, processing of animal products

Industrial production growth rate 2.4% (2000 est.)

Electricity - production 2.77 billion kWh (2000)

Electricity - production by source
fossil fuel: 100%
hydro: 0%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 2.732 billion kWh (2000)

Electricity - exports 25 million kWh (2000)

Electricity - imports 181 million kWh (2000)

Agriculture - products wheat, barley, potatoes, forage crops; sheep, goats, cattle, camels, horses

Exports $466.1 million (f.o.b., 2000)

Exports - commodities copper, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals

Exports - partners China 59%, US 20%, Russia 10%, Japan 2% (2000)

Imports $614.5 million (c.i.f., 2000)

Imports - commodities machinery and equipment, fuels, food products, industrial consumer goods, chemicals, building materials, sugar, tea

Imports - partners Russia 34%, China 21%, Japan 12%, South Korea 9%, US 4% (2000)

Debt - external $760 million (2000 est.)

Economic aid - recipient $208.7 million (1999 est.)

Currency togrog/tugrik (MNT)

Currency code MNT

Exchange rates togrogs/tugriks per US dollar - 1,101.29 (December 2001), 1,097.70 (2001), 1,076.67 (2000), 1,072.37 (1999), 840.83 (1998), 789.99 (1997)

Fiscal year calendar year

NOTE: The information regarding Mongolia on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Mongolia Economy 2002 information contained here. All suggestions for corrections of any errors about Mongolia Economy 2002 should be addressed to the CIA.