Population: 2.96 millions (2015 est.)
Area: 1,564,116 km2
Capital: Ulaanbaatar (population 1,3 millions) (2013 est.)
GDP (2015) : 11.781 billion (current USD)
GDP composition by sector (2015 est.):
GDP Annual Growth Rate (2014): 8 %
GDP per capita (2015): 3968 (current USD)
USD Inflation rate (2016): 0,6 %
In recent years Mongolia has become one of the most rapidly expanding economies in the world.
The main driver of this rapid economic expansion has been the mining industry’s development. Mongolia is richly endowed with natural resources. With increasing commodities prices in the world market for the past 15 years, the mining sector’s share in GDP increased to 20 %, twice the level of a decade ago. Mongolia’s main export commodities are copper, gold and coal, and Mongolia is now one of the major coal exporters to China.
Moreover, it is expected that during the next five years major mining projects of copper (Oyu Tolgoi project) and coal (Tavan Tolgoi project) will reach their full potential, likely further increasing economic expansion. According to some estimates, Mongolia’s GDP could reach US$25 billion by 2020, which is 2.5 times the size of today’s economy.
These developments haven’t gone unnoticed in the world market. Mongolia has become one of the most attractive economies for investors. In 2013 alone the Mongolian government sold US$1.8 billion of bonds in world markets, which is a testament to the strong upside expectation of the economy.
However, the Mongolian economy faces serious challenges to reach its full potential and take advantage of the mining boom’s opportunities. Since Mongolia is becoming increasingly dependent on the export of raw minerals, world price fluctuations for commodities have destabilizing effects on the nation’s economy.
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