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Mongolia's extensive mineral deposits and attendant growth in mining-sector activities have transformed Mongolia's economy, which traditionally has been dependent on herding and agriculture. Mongolia's copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten deposits, among others, have attracted 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. The country opened a fledgling stock exchange in 1991. Mongolia joined the World Trade Organization 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 hard by the global financial crisis. Slower global economic growth hurt the country's exports, notably copper, and slashed government revenues. As a result, Mongolia's real economy contracted 1.3% in 2009. In early 2009, the International Monetary Fund reached a $236 million Stand-by Arrangement with Mongolia and the country has largely emerged from the crisis with better regulations and closer supervision. The banking sector strengthened but weaknesses remain. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi mine, considered to be among the world's largest untapped copper-gold deposits. Mongolia's ongoing dispute with a foreign investor over Oyu Tolgoi, however, has called into question the attractiveness of Mongolia as a destination for foreign direct investment. Negotiations to develop the massive Tavan Tolgoi coal field also have stalled. The economy has grown more than 10% per year since 2010, largely on the strength of commodity exports to nearby countries and high government spending domestically. Mongolia's economy, however, faces near-term economic risks from the government's loose fiscal and monetary policies, which are contributing to high inflation, and from uncertainties in foreign demand for Mongolian exports. Trade with China represents more than half of Mongolia's total external trade - China receives more than 90% of Mongolia's exports and is Mongolia's largest supplier. Mongolia has relied on Russia for energy supplies, leaving it vulnerable to price increases; in the first 11 months of 2013, Mongolia purchased 76% of its gasoline and diesel fuel and a substantial amount of electric power from Russia. A drop in foreign direct investment and a decrease in Chinese demand for Mongolia's mineral exports are putting pressure on Mongolia's balance of payments. Remittances from Mongolians working abroad, particularly in South Korea, are significant.


GDP (purchasing power parity):
country comparison to the world: 140

GDP (official exchange rate):


GDP - composition, by sector of origin:
agriculture:16.5%

wheat, barley, vegetables, forage crops; sheep, goats, cattle, camels, horses


Industries:

9% (2011 est.)

29.8% (2011 est.)


Household income or consumption by percentage share:
lowest 10%:3%

36.5 (2008)

31.1% of GDP (2013 est.)

-8.1% of GDP (2013 est.)

calendar year


Inflation rate (consumer prices):
country comparison to the world: 196

Central bank discount rate:
country comparison to the world: 15

Commercial bank prime lending rate:
country comparison to the world: 23

Stock of narrow money:
country comparison to the world: 143

Stock of broad money:
country comparison to the world: 120

Stock of domestic credit:
country comparison to the world: 122

Market value of publicly traded shares:

4.48 billion kWh (2010 est.)

3.951 billion kWh (2010 est.)

22 million kWh (2010 est.)

263 million kWh (2010 est.)

833,200 kW (2010 est.)

99.9% of total installed capacity (2010 est.)

0% of total installed capacity (2010 est.)

0% of total installed capacity (2010 est.)

0.1% of total installed capacity (2010 est.)

9,935 bbl/day (2012 est.)

5,680 bbl/day (2010 est.)

0 bbl/day (2010 est.)

NA bbl

0 bbl/day (2010 est.)

21,610 bbl/day (2011 est.)

0 bbl/day (2010 est.)

17,360 bbl/day (2010 est.)

0 cu m (2011 est.)

0 cu m (2010 est.)

0 cu m (2011 est.)

0 cu m (2011 est.)

0 cu m (1 January 2013 est.)

10.21 million Mt (2011 est.)

176,700 (2012)

3.375 million (2012)

general assessment:network is improving with international direct dialing available in many areas; a fiber-optic network has been installed that is improving broadband and communication services between major urban centers with multiple companies providing inter-city fiber-optic cable services

following a law passed in 2005, Mongolia's state-run radio and TV provider converted to a public service provider; also available are private radio and TV broadcasters, as well as multi-channel satellite and cable TV providers; more than 100 radio stations, including some 20 via repeaters for the public broadcaster; transmissions of multiple international broadcasters are available (2008)


Internet country code:

44 (2013)

580 km (the only waterway in operation is Lake Hovsgol) (135 km); Selenge River (270 km) and Orhon River (175 km) are navigable but carry little traffic; lakes and rivers freeze in winter, they are open from May to September) (2010)

1.12% of GDP (2012)