Economy of Mongolia
Mongolia is the world’s most sparsely populated country with an area of approximately 604,000 square miles – making it the 19th largest country on earth. Mongolia’s emerging economy is mainly based on herding, agriculture, and its over US$1.3 trillion resource sector.
Before the 1990s, Mongolia’s economy was mainly dependant on aids from the USSR. Following the dismantlement of the USSR, Mongolia suffered deep recession and political and natural disasters leading to economic reforms, and eventually opening up its boundaries for free-market economies and privatization of the government-run economy.
Mongolia opened its first stock exchange in 1991 and joined the World Trade Organization in 1997. Economic growth was slightly less than 10% from 2004-2008, 6.5% in 2010, 18% in 2011, and 12% in 2012. Mongolia saw its economy contract 1.5% in 2009 right after the global financial crisis.
Mongolia’s 2012 GDP was $15.22 billion – making it 140 on the country rank comparison to the world. However, GDP growth was an astounding 333% from 1981-212 – making it 5th on the list comparison list for 2012. Mongolia is forecasted to be one of the top five fastest growing economies on earth over the next decade. GDP per capita for 2012 was $5,400, or 149 on the world comparison list.
Mongolia is rich in agriculture and mining. Mongolia exports meat, wool, and cashmere. In natural resources, Mongolia holds and exports copper, molybdenum, fluorspar, tin, tungsten, coal, uranium, precious and semiprecious stones, and gold. Mongolia is the world’s number one cashmere producer and is home to one of the world’s largest copper mines.
As Mongolia is rich in natural resources and perfectly positioned to meet China’s insatiable demand, foreign investments are pouring in. As the years go by, things are looking brighter for this amazing country.
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