Economic Overview

Gross Domestic Product
The Mongolian economy advanced 4.2 percent in the first quarter of 2017, compared to 3.1 percent expansion in the previous year. It was the strongest growth since 2014, as household consumption (3.1 percent from -0.6 percent in Q1 of 2016) and investments (53.2 percent from -3.5 percent) rebounded. In contrast, government spending contracted (-6.3 percent from 16 percent). Also, net external demand contributed negatively, as imports (56.9 percent from 7.3 percent) rose at a faster pace than exports (34.5 percent from 2.5 percent). GDP Annual Growth Rate in Mongolia averaged 5.57 percent from 1991 until 2016, reaching an all time high of 17.50 percent in the fourth quarter of 2011 and a record low of -9.30 percent in the fourth quarter of 1992.

Description: Mongolia GDP Annual Growth Rate

Principal Sectors of the Economy

The industry sector consists of four main sub-sectors: (i) mining and quarrying, (ii) manufacturing, (iii) construction, and (iv) electricity, gas steam and air conditioning supply. In 2016, the industry sector, which accounted for 35.1% of nominal GDP, recorded a growth rate of 5.7%.

The agriculture sector consists of agriculture, forestry and fishing and accounted for 14.6% of nominal GDP in 2016, which was 16.6 percent in 2015.

 Source: National Statistical Office of Mongolia

The service sector consists of six main sub-sectors: (i) wholesale and retail trade, (ii) transportation and storage, (iii)information and communication, (iv) financial and  insurance activities, (v) real estate activities and (vi) education . In 2016, the service sector was accounted for 50.3% of nominal GDP.

Foreign trade
In 2016, foreign trade led to a total external trade turnover of U.S.$7.3 billion of which exports represented U.S.$ 4.319 billion and imports represented U.S $3.003 billion. In 2015, mineral exports accounted for 89 percent of total exports. Mongolia exports mineral products (copper, coal, molybdenum, tin, tungsten, and gold), natural or cultured stones, jewelry, textiles, animal origin products, hides and skins. Mongolia's main exports partner is China (83% of total exports). Others include: UK and Russia. Mongolia imports mainly mineral products, machinery, equipment, electric appliances, recorders,TV sets & spare parts, vehicles, food products and base metals. Mongolia's main import partners are China (36%) and Russia (27% of total). Others include Japan, Korea, USA and Germany.