The Economy of Mongolia

The economy of Mongolia is traditionally made up of agriculture and livestock – sheep, cattle, goats, Bactrian camels, and horses. Goal also has major contribution on the industrial sector as well with other mineral deposits like coal, copper, tin, molybdenum, and tungsten. As of 2007, the country’s GDP is roughly $8.5 billion and GDP per capita of $2,100. The services constitute majority of the economy at 51%, followed by agriculture 22%, and the industry sector 27%. The Mongolian Stock Exchange, set up in 1991, is the smallest stock exchange in the world in terms of market capitalization.

China is Mongolia’s biggest export partner. In 2007, about 71% of the country’s exportation went to China and 32% of all imports came from China. Other trading partners of Mongolia include Russia, Canada, South Korea, Japan, and the US. Mongolia’s export commodities are copper, apparel, animal products, wool, cashmere, fluorspar, and some nonferrous metals.

The country became a member of the World Trade Organization (WTO) in 1997. A Consultative Group Meeting was held in Ulaanbaatar in June 1999 wherein the international donor community pledged more than $300 million each year. Between 1990 and 1991, Mongolia had begun developing a free enterprise (market economy) as a result of the political transition in the country. Foreign investments from industrialized nations such as China, South Korea, Japan, Russia, and Germany have made contributions on the country’s major infrastructures one of the biggest is the 1000-km north-south road connecting Russian border Sukhbaatar and Chinese border Zamyn-Uud.