Editing Economy of Mongolia

{{Short description|none}}
{{Use dmy dates|date=October 2020}}
{{Use American English|date=March 2017}}
{{Update|date=September 2024}}
{{Infobox economy
| country = Mongolia
| image = UB downtown.jpg
| caption = Aerial view of [[Ulaanbaatar]], the economic center of Mongolia with the [[Sükhbaatar Square]] in the middle and the [[Blue Sky Tower]] in the background
| image_size = 310px
| currency = [[Mongolian tögrög]] (MNT, ₮)
| year = [[Calendar year]]
| organs = [[World Trade Organization|WTO]], [[International Monetary Fund|IMF]], [[World Bank]], [[Asian Development Bank|ADB]], [[Shanghai Cooperation Organisation|SCO]] (Observer)
| group = {{plainlist|
*[[Developing country|Developing/Emerging]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019 |archive-date=22 December 2019 |archive-url=https://web.archive.org/web/20191222001529/https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |url-status=live}}</ref>
*Upper-middle income economy<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019 |archive-date=28 October 2019 |archive-url=https://web.archive.org/web/20191028223324/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |url-status=live}}</ref>}}
| population = {{increase}} 3,537,947 (2025)<ref>{{cite web |url=https://www.macrotrends.net/global-metrics/countries/MNG/mongolia/population |title=Mongolia Population 1950-2025 |publisher=[[MacroTrends]] |website=macrotrends.net |access-date=May 6, 2025}}</ref>
| gdp = {{plainlist|
*{{increase}} $25.8 billion (nominal, 2025)<ref name="IMFWEOMN">{{cite web |url=https://www.imf.org/external/datamapper/profile/MNG |title=International Monetary Fund, April 2025 |publisher=[[International Monetary Fund]] |website=IMF.org}}</ref>
*{{increase}} $73.28 billion ([[Purchasing power parity|PPP]], 2025)<ref name="IMFWEOMN"/>}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|120th (nominal, 2025)]]
*[[List of countries by GDP (PPP)|113st (PPP, 2025)]]}}
| growth = {{plainlist|
*7.4%&nbsp;(2023)
*5.5%&nbsp;(2024)
*7.0%&nbsp;(2025)<ref name="IMFWEOMN"/>}}
| per capita = {{plainlist|
*{{increase}} $7,201 (nominal, 2025)<ref name="IMFWEOMN"/>
*{{increase}} $20,448 (PPP, 2025)<ref name="IMFWEOMN"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|97th (nominal, 2025)]]
*[[List of countries by GDP (PPP) per capita|90th (PPP, 2025)]]}}
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 12.1%
*[[Secondary sector of the economy|industry]]: 38.2%
*[[Tertiary sector of the economy|services]]: 49.7% 
*(2017 est.)<ref name="CIAWFMG"/>}}
| inflation = {{plainlist|
*10.3% (2023)
*6.5% (2024)
*9.0% (2025)<ref name="IMFWEOMN"/>}}
| poverty = {{plainlist|
*27.1% (2022)<ref>{{cite web |url=https://montsame.mn/mn/read/337173
|website=data.worldbank.org |access-date=9 January 2020 |archive-date=14 November 2022 |archive-url=https://web.archive.org/web/20221114161321/https://data.worldbank.org/indicator/SI.POV.NAHC?locations=MN |url-status=live |title=Ядуурлын түвшин 2022 онд 27.1 хувьтай гарчээ}}</ref>
*2% on less than $3.20 (2022)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.LMIC?locations=MN |title=Poverty headcount ratio at $3.20 a day (2011 PPP) (% of population) - Mongolia |publisher=World Bank |website=data.worldbank.org |access-date=21 March 2020 |archive-date=14 November 2022 |archive-url=https://web.archive.org/web/20221114162822/https://data.worldbank.org/indicator/SI.POV.LMIC?locations=MN |url-status=live}}</ref>}}
| gini = 32.7 {{color|darkorange|medium}} (2018)<ref>{{cite web |title=GINI index (World Bank estimate) - Mongolia |url=https://data.worldbank.org/indicator/SI.POV.GINI?locations=MN |website=data.worldbank.org |publisher=World Bank |access-date=21 March 2020 |archive-date=1 January 2020 |archive-url=https://web.archive.org/web/20200101132736/https://data.worldbank.org/indicator/SI.POV.GINI?locations=MN |url-status=live}}</ref>
| hdi = {{plainlist|
*{{increase}} 0.741 {{color|green|high}} (2022)<ref name="hdi">{{cite web |url=https://hdr.undp.org/data-center/specific-country-data#/countries/MNG |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org }}</ref> ([[List of countries by Human Development Index|96th]])
*{{increase}} 0.645 {{color|darkorange|medium}} [[List of countries by inequality-adjusted HDI|IHDI]] (2022, [[List of countries by inequality-adjusted HDI|70th]])<ref name="hdi"/>}}
| labor force = {{plainlist|
*{{increase}} 1,333,084 (2019)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=MN |title=Labor force, total - Mongolia |publisher=World Bank |website=data.worldbank.org |access-date=9 January 2020 |archive-date=8 December 2022 |archive-url=https://web.archive.org/web/20221208182618/https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=MN |url-status=live}}</ref>
*{{decrease}} 54.5% employment rate (2023)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=MN |title=Employment to population ratio, 15+, total (%) (national estimate) - Mongolia |publisher=World Bank |website=data.worldbank.org |access-date=9 January 2020 |archive-date=8 December 2022 |archive-url=https://web.archive.org/web/20221208180120/https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=MN |url-status=live}}</ref>}}
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 31.1%
*[[Secondary sector of the economy|industry]]: 18.5%
*[[Tertiary sector of the economy|services]]: 50.5% 
*(2016)<ref name="CIAWFMG">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/mongolia/ |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=5 April 2019 |archive-date=15 January 2023 |archive-url=https://web.archive.org/web/20230115163448/https://www.cia.gov/the-world-factbook/countries/mongolia/ |url-status=live}}</ref>}}
| unemployment = {{plainlist|
*{{decreasePositive}} 5.43% (2024 est.)
*{{decreasePositive}} 9.9% (Q3, 2019)<ref>{{cite web |title=UNEMPLOYMENT RATE, sex, region, aimag and the Capital, by quarter, annual |url=http://1212.mn/tables.aspx?tbl_id=DT_NSO_0400_020V1&SOUM_select_all=0&SOUMSingleSelect=_0&Sex_select_all=0&SexSingleSelect=_1&YearQ_select_all=0&YearQSingleSelect=_201903_201902_201901_201804_201803&YearY_select_all=0&YearYSingleSelect=&viewtype=linechart |website=1212.mn |publisher=National Statistics Office of Mongolia |access-date=3 February 2020 |archive-date=14 November 2022 |archive-url=https://web.archive.org/web/20221114155938/http://1212.mn/tables.aspx?tbl_id=dt_nso_0400_020v1&soum_select_all=0&soumsingleselect=_0&sex_select_all=0&sexsingleselect=_1&yearq_select_all=0&yearqsingleselect=_201903_201902_201901_201804_201803&yeary_select_all=0&yearysingleselect=&viewtype=linechart |url-status=live}}</ref>
*{{decreasePositive}} 16.8% youth unemployment (2018)<ref>{{cite web |title=Unemployment, youth total (% of total labor force ages 15-24) (national estimate) - Mongolia |url=https://data.worldbank.org/indicator/SL.UEM.1524.NE.ZS?locations=MN&name_desc=false |website=data.worldbank.org |publisher=World Bank |access-date=3 February 2020 |archive-date=14 November 2022 |archive-url=https://web.archive.org/web/20221114162824/https://data.worldbank.org/indicator/SL.UEM.1524.NE.ZS?locations=MN&name_desc=false |url-status=live}}</ref>}}
| edbr = {{decrease}} [[Ease of doing business index#Ranking|81st (easy, 2020)]]<ref name=" World Bank Ease of Doing Business ">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/mongolia |title=Ease of Doing Business in Mongolia |publisher=Doingbusiness.org |access-date=2017-01-23 |archive-date=6 December 2011 |archive-url=https://web.archive.org/web/20111206031549/http://www.doingbusiness.org/data/exploreeconomies/mongolia/ |url-status=live}}</ref>
| industries = [[construction]] and [[construction materials]], [[mining]] ([[coal]], [[copper]], [[molybdenum]], [[fluorspar]], [[tin]], [[tungsten]], and [[gold]]), [[oil]], [[food]] and [[beverages]], processing of [[animal products]], [[cashmere wool]] and natural fiber manufacturing
| exports = {{increase}} $12.65 billion (2023 est.)<ref name="CIAWFMG"/>
| export-goods = copper, apparel, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals, coal, crude oil
| export-partners = {{plainlist|
*{{flag|China}}(-) 82.60% 
*{{flag|Switzerland}}(+) 9.41%
*{{flag|Singapore}}(+) 2.75%
*{{flag|South Korea}}(+) 2.42%
*{{flag|Russia}}(-) 1.22%
*(2021)<ref>{{cite web |url=https://wits.worldbank.org/CountryProfile/en/Country/MNG/Year/2020/TradeFlow/EXPIMP/Partner/by-country |website=WITS, World Integrate Trade Solution |title=Mongolia trade balance, exports, imports by country 2020 &#124; WITS Data |access-date=22 October 2022 |archive-date=11 March 2023 |archive-url=https://web.archive.org/web/20230311160110/https://wits.worldbank.org/CountryProfile/en/Country/MNG/Year/2020/TradeFlow/EXPIMP/Partner/by-country |url-status=live}}</ref>}}
| imports = {{increase}} $4.345 billion (2017 est.)<ref name="CIAWFMG"/>
| import-goods = machinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, cigarettes and tobacco, appliances, soap and detergent
| import-partners = {{plainlist|
*{{flag|China}}(+) 36.39%
*{{flag|Russia}}(+) 28.56%
*{{flag|Japan}}(-) 6.62%
*{{flag|South Korea}}(-) 4.51%
*{{flag|Germany}}(+) 3.25%
*(2021)<ref>{{cite web |url=https://wits.worldbank.org/CountryProfile/en/Country/MNG/Year/2020/TradeFlow/EXPIMP/Partner/by-country |website=WITS, World Integrate Trade Solution |title=Mongolia trade balance, exports, imports by country 2020 &#124; WITS Data |access-date=22 October 2022 |archive-date=11 March 2023 |archive-url=https://web.archive.org/web/20230311160110/https://wits.worldbank.org/CountryProfile/en/Country/MNG/Year/2020/TradeFlow/EXPIMP/Partner/by-country |url-status=live}}</ref>}}
| current account = {{decrease}} −$1.155 billion (2017 est.)<ref name="CIAWFMG"/>
| FDI = {{plainlist|
*{{increase}} $18.02 billion (2017 est.)<ref name="CIAWFMG"/>
*{{increase}} Abroad: $495 million (31 December 2017 est.)<ref name="CIAWFMG"/>}}
| gross external debt = {{increaseNegative}} $33.8% billion (2023 est.)<ref name="CIAWFMG"/>
| debt = {{increaseNegative}} 180.3% of GDP (2023 est.)<ref name="CIAWFMG"/>
| revenue = 2.967 billion (2017 est.)<ref name="CIAWFMG"/>
| expenses = 3.681 billion (2017 est.)<ref name="CIAWFMG"/>
| balance = −6.4% (of GDP) (2017 est.)<ref name="CIAWFMG"/>
| credit = [[Standard & Poor's]]:<ref>{{cite web |title=Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=26 May 2011 |archive-date=26 June 2015 |archive-url=https://web.archive.org/web/20150626122915/http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |url-status=live}}</ref><br />BB- (Domestic)<br />BB- (Foreign)<br />BB (T&C Assessment)<br />Outlook: Stable<ref name=guardian>{{cite news |title=How Fitch, Moody's and S&P rate each country's credit rating |date=15 April 2011 |first1=Simon |last1=Rogers |first2=Ami |last2=Sedghi |work=The Guardian |url=https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |access-date=31 May 2011 |archive-date=1 August 2013 |archive-url=https://web.archive.org/web/20130801105234/http://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |url-status=live}}</ref><br />[[Moody's]]:<br />B1<br />Outlook: Stable<br />[[Fitch Group|Fitch]]:<ref name=guardian/><br />B+<br />Outlook: Stable
| aid = $185.94 million (2008)
| reserves = {{increase}} $3.016 billion (31 December 2017 est.)<ref name="CIAWFMG"/>
| cianame = mongolia
| spelling = US
}}
The '''economy of Mongolia''' has traditionally been based on agriculture and livestock. [[Mongolia]] also has extensive [[mineral]] deposits: [[copper]], [[coal]], [[molybdenum]], [[tin]], [[tungsten]], and [[gold]] account for a large part of industrial production. [[Soviet Union|Soviet]] assistance, at its height one-third of [[gross domestic product]] (GDP), disappeared almost overnight in 1990–91, in the time of the [[collapse of the Soviet Union]]. Mongolia was driven into deep [[recession]].

[[Economic growth]] picked up in 1997–99 after stalling in 1996 due to a series of [[natural disaster]]s and increases in world prices of [[copper]] and cashmere. Public revenues and exports collapsed in 1998 and 1999 due to the repercussions of the [[Asian financial crisis]]. In August and September 1999, the economy suffered from a temporary Russian ban on exports of oil and oil products. Mongolia joined the [[World Trade Organization]] (WTO) in 1997.<ref>Montsame News Agency.  ''Mongolia''.  2006, Foreign Service Office of [[Montsame News Agency]], {{ISBN|99929-0-627-8}}, p. 72</ref> The international donor community pledged over $300 million per year in the last Consultative Group Meeting, held in [[Ulaanbaatar]] in June 1999.  Recently, the Mongolian economy has grown at a fast pace due to an increase in mining and Mongolia attained a GDP growth rate of 11.7% in 2013.<ref>{{Cite journal|url=http://www.eastasiaforum.org/2014/03/23/mongolias-economic-prospects-and-challenges/|title=Mongolia's economic prospects and challenges|last=philip|date=2014-03-23|journal=East Asia Forum Quarterly |volume=6|issue=1|pages=3–5|access-date=2016-08-10|archive-date=6 May 2023|archive-url=https://web.archive.org/web/20230506094419/https://www.eastasiaforum.org/2014/03/23/mongolias-economic-prospects-and-challenges/|url-status=live}}</ref> However, because much of this growth is export-based, Mongolia is suffering from the global slowdown in mining caused by decreased growth in China.<ref>{{Cite web|url=http://www.adb.org/countries/mongolia/economy|title=Mongolia: Economy|last=Anonymous|date=2014-09-02|website=Asian Development Bank|language=en|access-date=2016-08-10|archive-date=2 June 2023|archive-url=https://web.archive.org/web/20230602131148/https://www.adb.org/countries/mongolia/economy|url-status=live}}</ref>

==Economic history==
[[File:GDP_per_capita_development_of_Mongolia.svg|thumb|Historical development of real GDP per capita in Mongolia]]

===Socialist era===
{{Main|Economy of the People's Republic of Mongolia}}
The rapid political changes of 1990–91 marked the beginning of Mongolia's efforts to develop a [[market economy]], but these efforts have been complicated and disrupted by the dissolution and continuing deterioration of the economy of the former [[Soviet Union]]. Prior to 1991, 80% of Mongolia's trade was with the [[former Soviet Union]], and 15% was with other [[Council for Mutual Economic Assistance]] (CMEA) countries. Mongolia was heavily dependent upon the former Soviet Union for fuel, medicine, and spare parts for its factories and power plants.{{Citation needed|date=May 2021}}

The former Soviet Union served as the primary market for Mongolian industry. In the 1980s, Mongolia's industrial sector became increasingly important. By 1989, it accounted for an estimated 34% of material products, compared to 18% from [[Agriculture in Mongolia|agriculture]]. However, minerals, animals, and animal-derived products still constitute a large proportion of the country's exports. Principal imports included machinery, [[petroleum]], cloth, and building materials.

In the late 1980s, the government began to improve links with non-[[communist]] [[Asia]] and [[Western world|the West]], and [[tourism in Mongolia]] developed. As of 1 January 1991, Mongolia and the former Soviet Union agreed to conduct bilateral trade in [[hard currency]] at world prices.

Despite its external trade difficulties, Mongolia has continued to press ahead with reform. [[Privatization]] of small shops and enterprises has largely been completed in the 1990s, and most prices have been freed. Privatization of large state enterprises has begun. [[Tax reform]]s also have begun, and the barter and official exchange rates were unified in late 1991.

===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>

===Economic development present day===
[[File:Mongolian factory worker with cashmere.jpg|250px|thumb|Mongolian factory worker with cashmere]]
[[File:Market in Ulan Bator (Mongolia).jpg|250px|thumb|Market in Mongolia]]
Mongolia's reliance on trade with China meant that the worldwide financial crisis hit hard,<ref name="February 2009 Quarterly review">{{cite web
| url= http://siteresources.worldbank.org/INTMONGOLIA/Resources/MongoliaQuarterlyFebruary2009English.pdf
| title= Mongolia Quarterly review for February 2009
| publisher= [[World Bank]]
| access-date= 7 April 2010
| archive-date= 14 November 2022
| archive-url= https://web.archive.org/web/20221114155808/http://siteresources.worldbank.org/INTMONGOLIA/Resources/MongoliaQuarterlyFebruary2009English.pdf
| url-status= live
}}</ref> severely stunting the growth of its economy. With the sharp decrease in metal prices, especially copper (down 65% from July 2008-February 2009),<ref name="February 2009 Quarterly review" /> exports of its raw materials withered and by 2009 the [[stock market]] MSE Top-20 registered an all-time low since its dramatic spike in mid-2007.<ref name="Mongolian Stock Exchange">{{cite web
| url=http://www.mse.mn/
| title=Монголын Хөрөнгийн Бирж
| publisher=Mongolian Stock Exchange
| access-date=7 April 2010
| archive-date=27 December 2012
| archive-url=https://web.archive.org/web/20121227115041/http://www.mse.mn/
| url-status=live
}}</ref> Just as the economy started to recover, Mongolia was hit by a [[Zud]] over the winter period of 2009–2010, causing many livestock to perish and thus severely affecting cashmere production which accounts for a further 7% of the country's export revenues.<ref name="February 2009 Quarterly review" />

According to the World Bank and International Monetary Fund estimates, real GDP growth reduced from 8% to 2.7% in 2009, and exports shrunk 26% from $2.5Bn to $1.9Bn before a promisingly steady increase up until 2008.<ref name="February 2009 Quarterly review" /> Because of this, it was projected that between 20,000 and 40,000 fewer Mongolians (0.7% and 1.4% of the population respectively) will be lifted out of [[poverty]], than would have been the case without the global financial crisis.

In late 2009 and the beginning of 2010, however, the market has begun to recover once again. Having identified and learnt from its previous economic instabilities, legislative reform and a tightened fiscal policy promises to guide the country onwards and upwards. In February 2010, foreign assets were recorded at [[USD]]1,569,449 million.<ref name="Bank of Mongolia 2010 February">{{cite web
 |url       = http://www.mongolbank.mn/c/document_library/get_file?uuid=d9f20f03-bff5-4260-9fd6-7e45880c4cd4&groupId=16
 |title     = Bank of Mongolia Monthly Stat Bulletin
 |date      = February 2010
 |publisher = [[Bank of Mongolia]]
}}{{dead link|date=April 2018 |bot=InternetArchiveBot |fix-attempted=yes}}</ref> New trade agreements are being formed and foreign investors are keeping a close eye on the "[[Wolf Economy|Asian Wolf]]".

Mining is the principal industrial activity in Mongolia, making up 30% of all Mongolian industry.<ref>Montsame News Agency.  ''Mongolia''.  2006, Foreign Service Office of [[Montsame News Agency]], {{ISBN|99929-0-627-8}}, p. 82</ref> Another important industry is the production of cashmere.  Mongolia is the world's second largest producer of cashmere, with the main company, Gobi Cashmere, accounting for 21% of world cashmere production as of 2006.<ref>Montsame News Agency.  ''Mongolia''.  2006, Foreign Service Office of [[Montsame News Agency]], {{ISBN|99929-0-627-8}}, p. 86</ref>

Total export in 2019 was US$7.6 billion.<ref>{{cite web | url=https://trendeconomy.com/data/h2/Mongolia/TOTAL | title=Mongolia &#124; Imports and Exports &#124; World &#124; ALL COMMODITIES &#124; Value (US$) and Value Growth, YoY (%) &#124; 2003 - 2019 | date=14 November 2021 | access-date=30 April 2022 | archive-date=9 December 2022 | archive-url=https://web.archive.org/web/20221209024416/https://trendeconomy.com/data/h2/Mongolia/TOTAL | url-status=live}}</ref>

The 2022 economic growth is expected to be one percent and international institutions anticipate the economy to speed up by at least six percent in 2023 from expanded commodity exports.<ref>{{Cite web |last=Adiya |first=Amar |date=2022-06-22 |title=Mongolia's Economy Plunges Amid Border Disruptions and Growing Food Shortages |url=https://www.mongoliaweekly.org/post/mongolia-s-economy-plunges-amid-border-disruptions-and-growing-food-shortages |access-date=2022-09-11 |website=Mongolia Weekly |language=en |archive-date=5 February 2023 |archive-url=https://web.archive.org/web/20230205165902/https://www.mongoliaweekly.org/post/mongolia-s-economy-plunges-amid-border-disruptions-and-growing-food-shortages |url-status=live}}</ref> A significant commodity export boom is expected starting from 2023 with new coal rail networks {{Webarchive|url= |date=11 September 2022}} to China coming online and increased copper production from [[Rio Tinto (corporation)|Rio Tinto]]’s underground mine [[Oyu Tolgoi mine|Oyu Tolgoi]] in southern Mongolia.

In early 2020s, Mongolia's economy, though experiencing growth spurred by natural resource exports, faces challenges. Over-reliance on mining, rising debt, inflation, and potential fuel supply disruptions from Russia pose risks to the country's economic stability despite government efforts in infrastructure and social programs.<ref>{{Cite web |url=https://www.mongoliaweekly.org/post/mongolia-faq |access-date=2024-09-21 |website=www.mongoliaweekly.org |title=Mongolia FAQ |date=21 September 2024 }}</ref>

==The Wolf Economy==
The term was coined and subsequently popularized by [[Renaissance Capital (Russian company)|Renaissance Capital]] in their report "Mongolia: "Blue-sky opportunity".<ref>{{cite web |url=http://www.petromatad.com/live/uploads/Mongolia_11_Dec_Final.pdf |title=Strategy Mongolia: Country overview, Equity research, 11 December 2009 |website=www.petromatad.com |access-date=11 January 2022 |archive-url=https://web.archive.org/web/20150427002632/http://www.petromatad.com/live/uploads/Mongolia_11_Dec_Final.pdf |archive-date=27 April 2015 |url-status=dead}}</ref> They state that Mongolia is set to become the new [[Asian tiger]], or "Mongolian wolf" as they prefer to call it, and predict "unstoppable" economic growth.<ref>{{cite web
| url = http://biznetwork.mn/blog/show/id/6214
| title = Mongolian Wolf to Be 'Unstoppable'
| publisher = biznetwork.mn / [[Bloomberg L.P.|Bloomberg]]
| date = 14 December 2009
| access-date = 7 April 2010
| archive-date = 18 January 2011
| archive-url = https://web.archive.org/web/20110118055141/http://biznetwork.mn/blog/show/id/6214
| url-status = live
}}</ref> With the recent developments in the mining industry and foreign interest increasing at an astonishing rate, it is claimed that the 'Wolf Economy' looks ready to pounce. The term's aggressive title mirrors the country's attitude in the capital markets, and with newfound mineral prospects it has the chance to retain its title as one of the world's fastest growing economies.<ref>{{Cite web|date=2020-11-16|title=Investment in Mongolia 2019 - KPMG Mongolia|url=https://home.kpmg/mn/en/home/insights/2020/03/investment-in-mongolia-2019.html|access-date=2021-05-14|website=KPMG|language=en-US|archive-date=14 May 2021|archive-url=https://web.archive.org/web/20210514080046/https://home.kpmg/mn/en/home/insights/2020/03/investment-in-mongolia-2019.html|url-status=live}}</ref>

==Banks==
[[File:Mongolian Stock Exchange (2024).jpg|thumb|[[Mongolian Stock Exchange]]]]
The banking sector is highly concentrated, with five banks controlling about 80% of financial assets as of 2015:<ref name="Aaron Batten 2015">Aaron Batten, Poullang Doung, Enerelt Enkhbold, Gemma Estrada, Jan Hansen, George Luarsabishvili, Md. Goland Mortaza, and Donghyun Park, 2015. [http://www.adb.org/sites/default/files/publication/173460/ewp-450.pdf The Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform Priorities] {{Webarchive|url=https://web.archive.org/web/20200805231439/http://www.adb.org/sites/default/files/publication/173460/ewp-450.pdf |date=5 August 2020}}. ADB Economics Working Paper Series No. 450</ref> Shares of Mongolia's five largest domestic banks are to be offered to the public for the first time on the soon-to-be partially privatized [[Mongolian Stock Exchange]].<ref>{{Cite web |last=Adiya |first=Amar |date=2022-05-25 |title=What You Need To Know About Mongolia and What's On the Horizon in H2 2022 |url=https://www.mongoliaweekly.org/post/what-you-need-to-know-about-mongolia-and-what-s-on-the-horizon-in-h2-2022 |access-date=2022-05-27 |website=Mongolia Weekly |language=en |archive-date=27 May 2022 |archive-url=https://web.archive.org/web/20220527061715/https://www.mongoliaweekly.org/post/what-you-need-to-know-about-mongolia-and-what-s-on-the-horizon-in-h2-2022 |url-status=live}}</ref>

===Commercial banks===
*[[KhasBank]] - KhasBank is a community development bank and microfinance institution headquartered in Ulaanbaatar, with a nationwide network of 100 offices and 1309 staff as of June 2012.
*[[Khan Bank]] - Khan Bank has its central office in Ulaanbaatar, where 5 branches are located. It has 24 regional branch offices throughout the country, each of which supervises an additional 15 to 25 smaller branches in its area, totaling 512.<ref>{{cite web
 |url         = https://www.khanbank.com/en/35/About-Us.html
 |title       = Mission statement
 |access-date  = 7 May 2013
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20130424022255/https://www.khanbank.com/en/35/About-Us.html
 |archive-date = 24 April 2013
}}</ref>
*[[Golomt Bank]] - Golomt Bank started in 1995 and now manages around 23% of the assets in the domestic banking system. Recently begun its stock sales.
*[[Trade and Development Bank of Mongolia|Trade and Development Bank]] - TDB was formed in 1990 and is thus the oldest bank in Mongolia. It has a network of 28 branches and settlement centers, 60 ATMs, 1300 POS terminals, and [[Internet]]/[[SMS]] banking throughout the country.<ref name="Introduction TDB">{{cite web
 |url         = http://www.tdbm.mn/index.php?con=view&id=183
 |title       = Introduction: Trade and Development Bank of Mongolia
 |publisher   = Trade and Development Bank of Mongolia
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20110722220109/http://www.tdbm.mn/index.php?con=view&id=183
 |archive-date = 22 July 2011
}}</ref> Foreign banks like [[ING]] are breaking into the market.
*Other lesser banks are: M-Bank, State bank, Capitron Bank, Arig Bank, Bogd Bank, and Chinggis Bank.

In terms of access to credit, Mongolia ranked 61st out of 189 economies in accordance with 2015 Ease of Doing Business survey.<ref>{{Cite web |url=http://www.doingbusiness.org/data/exploreeconomies/mongolia/#getting-credit |title=Doing Business in Mongolia - World Bank Group |access-date=21 November 2011 |archive-date=6 December 2011 |archive-url=https://web.archive.org/web/20111206031549/http://www.doingbusiness.org/data/exploreeconomies/mongolia/#getting-credit |url-status=dead}}</ref> However, Mongolia had one of the highest banking branch penetration rates in the world at 1 bank branch per 15,257 residents as of May 2015.<ref name="Aaron Batten 2015"/>

===Investment banks===
With a strengthening capital market environment, many foreign and local investment institutions have begun to establish themselves in Mongolia. The most prominent local agencies include: [https://www.tdbcapital.mn/ TDB Capital] {{Webarchive|url=https://web.archive.org/web/20191231212618/https://www.tdbcapital.mn/ |date=31 December 2019}}, [https://web.archive.org/web/20181204084815/https://www.eurasiac.com/ Eurasia Capital], [[Monet Investment Bank]], [[BDSec]], [http://www.micc.mn MICC] {{Webarchive|url=https://web.archive.org/web/20200818133042/http://micc.mn/ |date=18 August 2020}}, and [https://web.archive.org/web/20190905180118/http://www.frontier.mn/ Frontier Securities].

==Environment==
{{main|Environmental issues in Mongolia}}
As a result of rapid [[urbanization]] and industrial growth policies under the communist regime, Mongolia's deteriorating environment has become a major concern. The burning of soft coal coupled with thousands<ref>{{Cite book |last=Gheorghe |first=Adrian |url=https://www.unicef.org/eap/sites/unicef.org.eap/files/press-releases/eap-media-Mongolia_air_pollution_crisis_ENG.pdf |title=MONGOLIA'S AIR POLLUTION CRISIS: A call to action to protect children's health |date=Feb 2018 |pages=15}}</ref> of factories in Ulaanbaatar and a sharp increase in [[Societal effects of cars|individual motorization]]<ref>{{Cite web |title=Breathing easy for the future: Mongolia needs better long-term measures against air pollution |url=https://asia.fes.de/news/mongolia-air-pollution |access-date=2024-06-23 |website=asia.fes.de |language=en-US}}</ref> has resulted in severe [[air pollution]]. [[Deforestation]], overgrazed [[pasture]]s, and, less recently, efforts to increase grain and hay production by plowing up more virgin land have increased [[soil erosion]] from wind and rain.

==Other statistics==
The following table shows the main economic indicators in 2007–2022.<ref>{{cite web |title=Report for Selected Countries and Subjects |url=https://www.imf.org/en/Home |access-date=23 March 2023 |website=www.imf.org/en/Home |language=en-US |archive-date=1 December 2021 |archive-url=https://web.archive.org/web/20211201213140/https://www.imf.org/en/Home |url-status=live}}</ref>{{Full citation needed|date=May 2023}}
{| class="wikitable" style="text-align:center; vertical-align:middle;"
|- style="font-weight:bold;"
! Year
! GDP
(in bil. US$ PPP)
! GDP per capita
(in US$ PPP)
!GDP
(in bil. US$ nominal)
! GDP growth in percentage<br />(real)
! Inflation <br />in percentage<br />(in Percent)
|-
| 2007
| 17.5
| 6,841
|4.2
| 8.8
| 17.8
|-
| 2008
| 19.3
| 7,250
|5.6
| 7.8
| 22.1
|-
| 2009
| 19.0
| 6,969
|4.6
| -2.1
| 4.2
|-
| 2010
| 20.6
| 7,357
|7.2
| 7.3
| 12.9
|-
| 2011
| 24.7
| 8,474
|10.4
| 17.3
| 8.9
|-
| 2012
| 28.9
| 9,332
|12.3
| 12.3
| 14.1
|-
| 2013
| 30.4
| 10,197
|12.6
| 11.6
| 12.5
|-
| 2014
| 32.5
| 10,760
|12.2
| 7.9
| 10.4
|-
| 2015
| 31.9
| 10,796
|11.6
| 2.4
| 1.0
|-
| 2016
| 32.8
| 10,739
|11.2
| 1.5
| 1.3
|-
| 2017
| 35.4
| 11,137
|11.5
| 5.6
| 6.3
|-
| 2018
| 39.0
| 11,775
|13.2
| 7.7
| 8.2
|-
| 2019
| 42.0
| 12,215
|14.2
| 5.6
| 5.2
|-
| 2020
| 40.5
| 11,447
|13.3
| -4.6
| 2.3
|-
| 2021
| 42.9
| 11,456
|15.3
| 1.6
| 13.5
|-
| 2022
| 47.1
| 11,567
|17.1
| 2.5
| 14.2
|}

'''Household income or consumption by percentage share:'''
* ''lowest 10%:'' 3.5%
* ''highest 10%:'' 35% (2005)

'''Distribution of family income - [[Gini index]]:'''
40 (2000)

'''Agriculture - products:'''
[[wheat]], [[barley]], vegetables, forage crops, [[sheep]], [[goat]]s, [[cattle]], [[camel]]s, horses

'''Industries:'''
construction and construction materials; mining ([[coal]], [[copper]], [[molybdenum]], [[fluorspar]], and [[gold]]); food and beverages; processing of animal products, cashmere wool and natural fiber manufacturing

'''Industrial production growth rate:'''
6% (2010 est.)

'''Electricity:'''
* ''production:'' 3.43 TWh (2006 est.)
* ''consumption:'' 2.94 TWh (2006 est.)
* ''exports:'' 15.95 GWh (2006 est.)
* ''imports:'' 125 GWh (2006 est.)

'''Electricity - production by source:'''
* ''fossil fuel:'' 80%
* ''hydro:'' 0%
* ''other:'' 20% (2011)
* ''nuclear:'' 0%

'''Oil:'''
* ''production:'' {{convert|822|oilbbl/d}} (2006 est.)
* ''consumption:'' {{convert|11220|oilbbl/d}} (2006 est.)
* ''exports:'' {{convert|822|oilbbl/d}} (2006 est.)
* ''imports:'' {{convert|12280|oilbbl/d}} (2006 est.)

'''Exports - commodities:'''
copper, apparel, livestock, animal products, cashmere wool, hides, fluorspar, other [[nonferrous metals]]

'''Imports - commodities:'''
machinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, [[sugar]], [[tea]]

'''Exchange rates:'''
tögrögs/[[tugrik]]s per US dollar: 1890 (2014), 1396 (2012), 1,420 (2009), 1,179.6 (2006), 1,205 (2005), 1,187.17 (2004), 1,171 (2003), 1,110.31 (2002), 1,097.7 (2001), 1,076.67 (2000)

==See also==
* [[Mongolia and the International Monetary Fund]]
* [[Agriculture in Mongolia]]
* [[Mining in Mongolia]]

==References==
{{More citations needed|date=April 2010}} 
{{Reflist}}

== External links ==
* {{in lang|en|mn}} [https://web.archive.org/web/20100925001903/http://www.mof.gov.mn/ Official site of the Ministry of Finance]
* {{in lang|en|mn}}  [http://www.mongolbank.mn/ Official government site of the Bank of Mongolia - the central bank] {{Webarchive|url=https://web.archive.org/web/20210428190425/https://www.mongolbank.mn/ |date=28 April 2021}}
* [https://www.cia.gov/the-world-factbook/countries/mongolia/ Mongolia] {{Webarchive|url=https://web.archive.org/web/20230115163448/https://www.cia.gov/the-world-factbook/countries/mongolia/ |date=15 January 2023}} [[CIA World Factbook]]
{{Mongolia topics}}
{{World Trade Organization}}
{{Asia in topic|Economy of}}
{{Commons}}

[[Category:Economy of Mongolia| ]]
[[Category:Economies of developing countries]]
[[Category:World Trade Organization member economies|Mongolia]]