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 1990-1991
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 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 DC.
Economic growth picked up in 1997-1999 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, 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 2000-2001. 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 old Soviet period; any settlement could
substantially increase Mongolia's foreign debt burden.
GDP:
purchasing power parity - $5.06 billion (2002 est.)
GDP - real growth rate:
3.9% (2002 est.)
GDP - per capita:
purchasing power parity - $1,900 (2002 est.)
GDP - composition by sector:
agriculture: 32%
industry: 23%
services: 45% (2001 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):
3% (2002 est.)
Labor force:
1.4 million (2001)
Labor force - by occupation:
primarily herding/agricultural
Unemployment rate:
20% (2000)
Budget:
revenues: $386 million
expenditures: $427 million, including capital expenditures of $NA
(2002 est.)
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)
Agriculture - products:
wheat, barley, potatoes, forage crops; sheep, goats, cattle,
camels, horses
Exports:
$501 million f.o.b. (2002 est.)
Exports - commodities:
copper, livestock, animal products, cashmere, wool, hides,
fluorspar, other nonferrous metals
Exports - partners:
China 43.8%, US 33.6%, Russia 9.6% (2002)
Imports:
$659 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 32%, China 19.4%, South Korea 12.1%, US 9.1%, Germany 4.7%,
Japan 4.3% (2002)
Debt - external:
$913 million (2001 est.)
Economic aid - recipient:
$208.7 million (1999 est.)
Currency:
togrog/tugrik (MNT)
Currency code:
MNT
Exchange rates:
togrogs/tugriks per US dollar - 1,134 (2002), 1,097.7 (2001),
1,076.67 (2000), 1,021.87 (1999), 840.83 (1998)
Fiscal year:
calendar year