Editing Economy of Mongolia (section)

===Transition to a market economy===
Between 1990 and 1993, Mongolia suffered triple-digit [[inflation]], rising [[unemployment]], shortages of basic goods, and food rationing. During that period, economic output contracted by one-third. As market reforms and private enterprise took hold, economic growth began again in 1994–95. Unfortunately, since this growth was fueled in part by over-allocation of bank credit, especially to the remaining state-owned enterprises, economic growth was accompanied by a severe weakening of the banking sector. GDP grew by about 6% in 1995, thanks to largely to a boom in copper prices. Average real economic growth leveled off to about 3.5% in 1996–99 due to the [[Asian financial crisis]], the [[1998 Russian financial crisis]], and worsening commodity prices, especially copper and gold.

Mongolia's [[gross domestic product]] (GDP) growth fell from 3.2% in 1999 to 1.3% in 2000. The decline can be attributed to the loss of 2.4 million livestock in bad weather and natural disasters in 2000. Prospects for development outside the traditional reliance on nomadic, livestock-based agriculture are constrained by Mongolia's landlocked location and lack of basic [[infrastructure]].  Since 1990, more than 1,500 foreign companies from 61 countries have invested{{when|date=July 2012}} a total of $338.3 million in Mongolia. By 2003 private companies made up 70% of Mongolian GDP and 80% of exports.<ref>Montsame News Agency.  ''Mongolia''.  2006, Foreign Service Office of [[Montsame News Agency]], {{ISBN|99929-0-627-8}}, p. 67</ref>

Until recently, there have been a very few restrictions on foreign investments during most of Mongolia's post-socialist period. Consequently, mining industry's contribution to FDI increased to almost 25% in 1999 from zero in 1990.<ref>Enerelt Enkhbold, 2014. "[https://www.academia.edu/29338640/The_Impact_of_SEFILM_on_the_Valuation_of_Mining_Companies The Impact of SEFILM on the Valuation of Mining Companies] {{Webarchive|url=https://web.archive.org/web/20221208180107/https://www.academia.edu/29338640/The_Impact_of_SEFILM_on_the_Valuation_of_Mining_Companies |date=8 December 2022}}". Монголын Нийгэм-Эдийн Засгийн Өнөөгийн Байдал, Тулгамдсан Асуудлууд. Илтгэлүүдийн эмхэтгэл, pp. 240–253</ref>