Market Profile

Mongolia is a landlocked country bordered by Russia to the north and China to the east, south and west. With an area of more than 1.5 million square kilometers (the world’s 19th largest country) and a population of approximately three million people, Mongolia has one of the lowest population densities in the world.

Mongolia’s population is relatively homogenous in terms of ethnicity, language and religion. Its population is also relatively young with more than 60 per cent below the age of 30.

In 1990, with the collapse of the USSR, Mongolia transitioned to a democracy and a free market economy. Fast forward to 2011 and Mongolia’s economy weathered many shocks to become one of the fastest growing economies in the world. Mongolia achieved GDP growth of 17.5 per cent in 2011, 12.3 per cent in 2012 and 11.6 per cent in 2013. This success was largely based on the investment in and development of the first stage of the US$ 6 billion Oyu Tolgoi copper-gold project and increased earnings from mineral exports.

The mining sector is integral to the Mongolian economy, which accounts for 19 per cent of GDP, and 90 per cent of export earnings. Agriculture (primarily herding), once the mainstay of the Mongolian economy, continues to decline in terms of share of national employment and contribution to GDP, it contributes about 16 per cent of GDP, while services continue to grow and contribute nearly 50 per cent of GDP and 56 per cent of national employment.

The Mongolian government has prioritized reducing the budget deficit and in February 2017 reached an agreement with the IMF on a 3 year Extended Fund Facility and funding package worth around US$ 5.5 billion. This is to assist with Mongolia’s economic recovery after a slump resulting from low commodity prices and a sharp fall in foreign investment in 2016 and GDP growth of only 1 per cent.

More information on doing business in Mongolia

Mongolian Mining Projects Report

The Mongolian Mining Projects Report 2015 is a guide for Australian mining equipment, technology and services (METS) exporters considering doing business in Mongolia.

Access the Mongolian Mining Projects Report

Facts

  • Imports from Mongolia A$9 million
  • Exports to Mongolia A$73 million
  • Capital Ulaanbaatar
  • Official Language Khalkh Mongol
  • Area 1,553,560 sq km
  • Population 3 million

Events

Australia Future Unlimited: Education Exhibition Mongolia 2018
22 Sep 2018
Join AFUEE 2018 Mongolia to meet prospective students in one of the fastest growing markets.

More Events

Information provided by DFAT

Country brief

A comprehensive overview of political, economic and bilateral and regional trade agreements.

» read more at DFAT

Trade and economic fact sheet

Containing general information, recent economic indicators, Australia’s trade and investment relationship with Mongolia and their global merchandise trade relationship that is updated twice a year.

» read more at DFAT

Smartraveller

The Department of Foreign Affairs and Trade’s Smartraveller site provides advice for business travellers and tourists going to Mongolia. This is regularly updated and should be checked before planning travel.

» read more at DFAT

Extractive Industries Transparency Initiative

The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.

The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.

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