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
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