Mongolia/Economy

Economy - overview: Economic activity traditionally has been based on agriculture and breeding of livestock. Mongolia also has extensive mineral deposits: copper, coal, molybdenum, tin, tungsten, and gold account for a large part of industrial production. Soviet assistance, at its height one-third of GDP, disappeared almost overnight in 1990-91, at the time of the dismantlement of the USSR. Mongolia was driven into deep recession, which was prolonged by the Mongolian People's Revolutionary Party's (MPRP) reluctance to undertake serious economic reform. The Democratic Union Coalition (DUC) government has embraced free-market economics, easing price controls, liberalizing domestic and international trade, and attempting to restructure the banking system and the energy sector. Major domestic privatization programs have been undertaken, as well as fostering of foreign investment through international tender of the oil distribution company, a leading cashmere company, and banks. Reform has been held back by the ex-communist MPRP opposition and by the political instability brought about through four successive governments under the DUC. Economic growth picked up in 1997-99 after stalling in 1996 due to a series of natural disasters and declines 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 (WTrO) in 1997. The international donor community pledged over $300 million per year at the last Consultative Group Meeting, held in Ulaanbaatar in June 1999.

GDP: purchasing power parity - $6.1 billion (1999 est.)

GDP - real growth rate: 3.5% (1999 est.)

GDP - per capita: purchasing power parity - $2,320 (1999 est.)

GDP - composition by sector:
agriculture: 33%
industry: 24%
services: 43% (1999 est.)

Population below poverty line: 40% (1999 est.)

Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 24.5% (1995)

Inflation rate (consumer prices): 9.5% (1998)

Labor force: 1.256 million (1998)

Labor force - by occupation: primarily herding/agricultural

Unemployment rate: 4.5% (1998)

Budget:
revenues: $260 million
expenditures: $366 million, including capital expenditures of $NA (1999)

Industries: construction materials, mining (particularly coal and copper); food and beverages, processing of animal products

Industrial production growth rate: 3.2% (1998)

Electricity - production: 2.66 billion kWh (1998)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 2.816 billion kWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 342 million kWh (1998)

Agriculture - products: wheat, barley, potatoes, forage crops; sheep, goats, cattle, camels, horses

Exports: $316.8 million (f.o.b., 1998)

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

Exports - partners: China 30.1%, Switzerland 21.5%, Russia 12.1%, South Korea 9.7%, US 8.1% (1998)

Imports: $472.4 million (f.o.b., 1998)

Imports - commodities: machinery and equipment, fuels, food products, industrial consumer goods, chemicals, building materials, sugar, tea

Imports - partners: Russia 30.6%, China 13.3%, Japan 11.7%, South Korea 7.5%, US 6.9% (1998)

Debt - external: $715 million (1998 est.)

Economic aid - recipient: $250 million (1998 est.)

Currency: 1 tughrik (Tug) = 100 mongos

Exchange rates: tughriks (Tug) per US$1 - 1,070.39 (December 1999), 1,072.37 (1999), 840.83 (1998), 789.99 (1997), 548.40 (1996), 448.61 (1995)

Fiscal year: calendar year