Economic overview: Mongolia's severe climate, scattered population, and wide expanses of unproductive land have constrained economic development. Economic activity traditionally has been based on agriculture and the breeding of livestock. In past years extensive mineral resources had been developed with Soviet support; total Soviet assistance at its height amounted to 30% of GDP. The mining and processing of coal, copper, molybdenum, tin, tungsten, and gold account for a large part of industrial production. Timber and fishing are also important sectors. The Mongolian leadership has been gradually making the transition from Soviet-style central planning to a market economy through privatization and price reform and has been soliciting support from international financial agencies and foreign investors. The economy, however, has still not recovered from the loss of Soviet aid. The country continues to suffer substantial economic hardships, with one-fourth of the population below the poverty line.
GDP: purchasing power parity - $4.9 billion (1995 est.)
GDP real growth rate: 6% (1995 est.)
GDP per capita: $1,970 (1995 est.)
GDP composition by sector: agriculture: 28% industry: 35% services: 37% (1993 est.)
Inflation rate (consumer prices): 53% (1995 est.)
Labor force: 1.115 million (mid-1993 est.) by occupation: primarily herding/agricultural note: over half the adult population is in the labor force, including a large percentage of women; shortage of skilled labor
Unemployment rate: 15% (1991 est.)
Budget:
revenues: $1.5 billion
expenditures: $1.3 billion, including capital expenditures of $NA
(1995 est.)
Industries: copper, construction materials, mining (particularly
coal); food and beverage, processing of animal products