Mongolia

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Mongolia - In Short.

Overview of Mongolia

The peoples of Mongolia have a long history under a number of nomadic empires dating back to the period of the Xiongnu in the 4th century B.C. The name Mongol goes back to at least the 11th century A.D. The most famous Mongol, TEMÜÜJIN (aka Genghis Khan) emerged as the ruler of all Mongols in the early 1200s. By the time of his death in 1227, he had created through conquest a Mongol Empire that extended across much of Eurasia. His descendants, including ÖGÖDEI and KHUBILAI (aka Kublai Khan), continued military campaigns of conquest, taking control of Eastern Europe, the Middle East, and the rest of China where KHUBILAI established the Yuan Dynasty in the 1270s. The Mongols attempted to invade Japan and Java before their empire broke apart in the 14th century. In the 17th century, Mongolia fell under the rule of the Manchus of the Chinese Qing Dynasty. Following the collapse of the Manchus in 1911, Mongolia declared its independence, achieving it with help from the Soviet Union in 1921. Mongolia became a socialist state (the Mongolian People’s Republic) in 1924. Following independence and until the collapse of the Soviet Union in 1989, the country was a Soviet satellite state, and heavily reliant on economic, military, and political assistance from Moscow. The period also was marked by periods of purges, political repression, economic stagnation, and tensions with China. Mongolia peacefully transitioned to an independent democracy in 1990. In 1992, it adopted a new constitution and established a free market economy. Since the country’s transition, it has conducted eight presidential and nine legislative elections as of 2021. Throughout the period, the ex-communist Mongolian People’s Revolutionary Party (MPRP) – which took the name Mongolian People’s Party (MPP) in 2010 – has competed for political power with the Democratic Party (DP) and several other smaller parties, including a new party formed by former President ENKHBAYAR, which confusingly adopted for itself the MPRP name until it merged with MPP in 2021. In the 2016 parliamentary elections, the MPP won overwhelming control of the Parliament over the DP, which had overseen a sharp decline in Mongolia’s economy during its control of the Parliament in the preceding years. Mongolians elected a DP member, Khaltmaa BATTULGA, as president in 2017. The June 2020 parliamentary elections left the MPP with continued dominant control of the parliament. Mongolians elected former prime minister and MPP member Ukhnaa KHURELSUKH as president in 2021. Mongolia maintains close cultural, political, and military ties with Russia while China is its largest economic partner. Mongolia’s foreign relations are focused on preserving its autonomy by balancing relations with China and Russia, as well as its other major partners, Japan, South Korea, and the US.
Value
Country Full Name
Mongolia
Country Code
MNG
Region
East Asia & Pacific
Income Group
Lower middle income
Currency Unit
GDP
13312981595
Population
3278292
Land Area
1557255
Net National Income Per Capita
2859.460565
GDP per Capita (PPP)
12366.94712

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Mongolia - Economic

Economy of Mongolia

Foreign direct investment in Mongolia’s extractive industries – which are based on extensive deposits of copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten – has transformed Mongolia’s landlocked economy from its traditional dependence on herding and agriculture. Exports now account for more than 40% of GDP. Mongolia depends on China for more than 60% of its external trade – China receives some 90% of Mongolia’s exports and supplies Mongolia with more than one-third of its imports. Mongolia also relies on Russia for 90% of its energy supplies, leaving it vulnerable to price increases. Remittances from Mongolians working abroad, particularly in South Korea, are significant.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 strong economic growth, because of market reforms and extensive privatization of the formerly state-run economy. The country opened a fledgling stock exchange in 1991. Mongolia joined the WTO in 1997 and seeks to expand its participation in regional economic and trade regimes.Growth averaged nearly 9% per year in 2004-08 largely because of high copper prices globally and new gold production. By late 2008, Mongolia was hit by the global financial crisis and Mongolia’s real economy contracted 1.3% in 2009. In early 2009, the IMF reached a $236 million Stand-by Arrangement with Mongolia and it emerged from the crisis with a stronger banking sector and better fiscal management. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi (OT) mine, among the world’s largest untapped copper-gold deposits. However, a dispute with foreign investors developing OT called into question the attractiveness of Mongolia as a destination for foreign investment. This caused a severe drop in FDI, and a slowing economy, leading to the dismissal of Prime Minister Norovyn ALTANKHUYAG in November 2014. The economy had grown more than 10% per year between 2011 and 2013 – largely on the strength of commodity exports and high government spending – before slowing to 7.8% in 2014, and falling to the 2% level in 2015. Growth rebounded from a brief 1.6% contraction in the third quarter of 2016 to 5.8% during the first three quarters of 2017, largely due to rising commodity prices.The May 2015 agreement with Rio Tinto to restart the OT mine and the subsequent $4.4 billion finance package signing in December 2015 stemmed the loss of investor confidence. The current government has made restoring investor trust and reviving the economy its top priority, but has failed to invigorate the economy in the face of the large drop-off in foreign direct investment, mounting external debt, and a sizeable budget deficit. Mongolia secured a $5.5 billion financial assistance package from the IMF and a host of international creditors in May 2017, which is expected to improve Mongolia’s long-term fiscal and economic stability as long as Ulaanbaatar can advance the agreement’s difficult contingent reforms, such as consolidating the government’s off-balance sheet liabilities and rehabilitating the Mongolian banking sector.

Unemployment Rate

Inflation Rate

Mongolia - GDP Composition

GDP Composiiton & Value Added of Mongolia

Last Updated: Jan, 2021, Updated For 2020.

Mongolia - GDP, Value Added

Demographics of Mongolia

sparsely distributed population throughout the country; the capital of Ulaanbaatar and the northern city of Darhan support the highest population densities
Geographic Location

Northern Asia, between China and Russia

Races

Khalkh 83.8%, Kazak 3.8%, Durvud 2.6%, Bayad 2%, Buriad 1.4%, Zakhchin 1.2%, Dariganga 1.1%, other 4.1% (2020 est.)

Languages

Mongolian 90% (official) (Khalkha dialect is predominant), Turkic, Russian (1999)major-language

Religion

Buddhist 51.7%, Muslim 3.2%, Shamanist 2.5%, Christian 1.3%, other 0.7%, none 40.6% (2020 est.)

Dependency & Expectancy of Mongolia

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Mongolia - Social Media Briefing

Mongolia - Social Media & Social Commerce

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Politics & Policies of Mongolia

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB, ARF, CD, CICA, CP, EBRD, EITI (compliant country), FAO, G-77, IAEA, IBRD, ICAO, ICC (NGOs), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURSO, MONUSCO, NAM, OPCW, OSCE, SCO (observer), UN, UNAMID, UNCTAD, UNESCO, UNIDO, UNISFA, UNMISS, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

Import of Mongolia

Export of Mongolia

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