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Introduction to the Economy of Mongolia
Southern Taiwan University of Science and Technology
Student ID: MA4N0206, GMBAName: Jargalsaikhan Batjargal
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Country profileMongolian economy highlightsMain industriesEconomic data 2010-2014Export and Import in 2014Member organizationsEconomic situationReferences
Content
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Area: 1,565.00 sq.km (slightly smaller than Alaska) Population: 3 million (as of 2015) (138th) Density: 4.97 sq. mi Location: Central Asia,
between Russia and China (landlocked – 2ond in the world) Capital city: Ulaanbaatar(45% of the population live in UB) Language: Mongolian, Kazakh, Russian, English
Currency: Togrog (MNT)1USD = 1993.26 (by Mongol bank rate as of 22 Oct, 2015) Political system:
Parliamentary Republic
Country profile
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Flag Coat of arms
Land
19th in the world 21Provinces (Aimag)
6th in AsiaDensity: 1.9
Country profile (cont’d)
www.invest-mongolia.apip.com
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Economic activity in Mongolia has traditionally been based on herding and agriculture.
Mongolia has extensive mineral deposits• (oil, coal, copper, molybdenum, tungsten, phosphates, tin, nickel, zinc, fluorspar, gold, silver, iron)
Since 1990, Mongolia has successfully transitioned into a market-oriented
economy from centrally-planned economy
Mongolian economy highlights
Estimated value: 1.3 trillion USD
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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 (FDI)
Although the poverty rate improved to 21.6% in 2014 from 27.4% in 2012, many people remain vulnerable, as does the economy as a whole, to risks stemming from downward pressure on commodity prices, fluctuating production expected from Oyu Tolgoi and other mines, severe weather that affects crops and livestock, and uncertainty regarding the authorities’ success in maintaining tight macroeconomic policies.
Mongolia’s economic growth decelerated from 7.8% in 2014 to 3.0% in the first half of 2015. Growth is now projected to bottom out at 2.3% in 2015, before an uptake to 3.0% in 2016.
Mongolian economy highlights (cont’d)
www.adb.org/countries/mongolia/economy
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Construction
Construction materials
Mining (coal, copper, molybdenum, fluorspar, tin, tungsten, gold)
Oil
Food and beverages
Processing of animal products
Cashmere
Natural fiber manufacturing
Main industries
www.focus-conomics.com 8
GDP Per capita
www.focus-economics.com 9
Economic growth (GDP, annual variation in %)
2010 2011 2012 2013 20140
2
4
6
8
10
12
14
16
18
20
6.5
17.5
12.511.6
7.9
www.focus-economics.com 10
Unemployment rate
2010 2011 2012 2013 20140
2
4
6
8
10
12
9.9
7.78.2 7.9 7.9
www.focus-economics.com 11
Inflation rate
2010 2011 2012 2013 20140
2
4
6
8
10
12
14
16
10.19.2
14.3
10.5
12.8
www.focus-economics.com 12
Exchange rate (vs USD)
2010 2011 2012 2013 20140
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1,3521,258
1,3531,516
1,815
www.focus-economics.com 13
Export and import
2010 2011 2012 2013 20140
1
2
3
4
5
6
7
2.9
4.8
4.4 4.3
5.8
3.2
6.66.7 6.4
5.2
Exports (USD billion)Imports (USD billion)
www.wits.worldbank.org 14
The top 5 products exported in 2014
Copper ores and concentrates
2,574,706.13 million
Bituminous coal, not agglomerated
834,090.22 million
Petroleum oils and oils obtained from bituminous
634,611.36 million
Non-agglomerated iron ores and concentrates
446,378.14 million
Gold405,234.22 million
www.wits.worldbank.org 15
The top 5 countries to which Mongolia exported in 2014
China87.80%
US$ 5,070 million
UK6.91%
US$ 399 million
Switzerland0.49%
US$ 28 million
Italy0.89%
US$ 51 million
Russian Federation1.07% US$
62 million
www.wits.worldbank.org 16
Petroleum oils, (excl. crude); preparation etc
US$ 1,154,614.17 million
Electrical energyUS$ 130,021.83 million
Automobiles nes including gas turbine poweredUS$ 92,958.41 million
Portland cement (excl. white)US$ 87,466.25
million
Bars & rods US$ 81,283.30 million
The top 5 products exported in 2014
www.wits.worldbank.org 17
The top 5 countries from which Mongolia imported goods in 2014
China33.20%
US$ 1,699 million
Japan7.16%
US$ 367 million
Republic of Korea6.83%
US$ 351 million
USA4.23%
US$ 217 million
Russian Federation
29.92% US$ 1,535
million
www.infomongolia.com 18
Member organizations
IMF(1991)
WB(1991)
ADB(1991)
WTO(1997)
ASEAN Regional
Forum(1998)
SCO
(observer)
G77(1989)
UN(1961)
Asia Cooperation
Dialogue(2004)
ASEM(2006)
EBRD(2000)
IFC(1991)
www.tol.org 19
The budget deficit may reach 1 trillion tugrik ($500 million) this year, almost double the level of 600 billion tugrik in the first eight months of 2015, Finance Minister Bolor Bayarbaatar said.
Mongolia’s economy relies heavily on mineral extraction, so the recent drop in commodity prices, added to the economic slowdown in China and falling interest by foreign investors in dealing with see-sawing government policy has hit it hard.
After several years of economic boom, including a 17.5 percent economic growth rate in 2011, Mongolia's economy went into a nosedive as commodity prices faltered. Foreign direct investment plummeted by more than 70 percent from 2013 to 2014.
Another factor keeping investors away are the pitfalls of Mongolia's mining industry including official delays and environmental concerns. The authorities attempted to break the stalemate through a national text-message referendum.
A deal to develop the huge Tavan Tolgoi coal mine is dormant, with China’s slower growth at least partly to blame, Reuters reports.
The estimated value of Mongolia’s resource wealth is approximately US$1.3trillion.
Economic situation
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www.wikipedia.org www.cia.gov www.nso.mn www.adb.org www.wb.org www.imf.org http://www.focus-economics.com/countries/mongolia http://wits.worldbank.org/countrysnapshot/MNG/textview http://www.infomongolia.com/ct/ci/261/ www.google.com http://
www.tol.org/client/article/25058-global-trends-hit-mongolian-economy.html
www.indexmundi.com › Factbook › Countries › Mongolia
References
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