Location: Northern Asia
Capital: Ulaanbaatar
Population (2012): 3,179,997
Surface area: 1,564,116 sq km
Currency: Togrog/Tugrik
GDP per capita (2011): US $ 3,059
Economy – Overview:
Economic activity in Mongolia has traditionally been based on herding and agriculture – Mongolia’s extensive mineral deposits, however, have attracted foreign investors. The country holds copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten deposits, which account for a large part of foreign direct investment and government revenues. 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 averaged nearly 9% per year in 2004-08 largely because of high copper prices and new gold production. By late 2008, as the country began to feel the effects of the global financial crisis, falling commodity prices helped lower inflation, but also reduced government revenues and forced cuts in spending. In early 2009, the International Monetary Fund reached a $236 million Stand-by Arrangement with Mongolia and the country has started to move out of the crisis.
In October 2009, the government passed long-awaited legislation on an investment agreement to develop Mongolia’s Oyu Tolgoi mine, considered to be one of the world’s largest untapped copper deposits. Recent calls by nationalist politicians to renegotiate the investment agreement, however, have called into question the attractiveness of Mongolia as a destination for foreign direct investment. The economy grew by 6.4% in 2010, 17.5% in 2011, and by more than 12.3% in 2012, 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 policies, which are contributing to high inflation, and uncertainties in foreign demand for Mongolian exports. Mongolia’s economy continues to be heavily influenced by its neighbours.
The economic slowdown in China during 2011-2012 resulted in fewer Mongolian exports, a widened trade gap, and decreased government revenues, putting pressure on Mongolian fiscal policy. Remittances from Mongolians working abroad, particularly in South Korea, are significant. Mongolia joined the World Trade Organization in 1997 and seeks to expand its participation in regional economic and trade regimes.
Human Development Index ranking (2012): 108 out of 186
Net Official Development Assistance (ODA) (2011): US $ 340 million
Top Three Donors of gross ODA: Japan, AsDF, IDA
FDI inflows (2012): $ 4,452million
Total External Debt (2011): US $ 6.2 billion
External debt stock (% of GNI) (2011): 32.7
Merchandise exports (2011): US$ 4,818 million
Terms of trade index (2012): 206.1
Major export commodities: Copper ores and concentrates; gold; zinc ores and concentrates
Cost to export per container (2013): US $ 2,555
HIPC Position (2012): Not eligible
United Nations Membership date: 27 October 1961
New York Mission:
Address: Permanent Mission of Mongolia to the United Nations
6 East 77th Street, New York, N.Y. 10075
Telephone: (212) 861-9460, 737-3874
Telefax: (212) 861-9464
e-mail: mongolia@un.int
website: www.un.int/mongolia
Correspondence: English
National holiday: 11 July