FAX: [976] (11) 320776
Flag description: three equal, vertical bands of red (hoist side), blue, and red; centered on the hoist-side red band in yellow is the national emblem ("soyombo" - a columnar arrangement of abstract and geometric representation for fire, sun, moon, earth, water, and the yin-yang symbol)
Mongolia Economy
Economy - overview: Economic activity traditionally has been based on agriculture and breeding of livestock. Mongolia also has extensive mineral deposits: copper, coal, molybdenum, tin, tungsten, and gold account for a large part of industrial production. Soviet assistance, at its height one-third of GDP, disappeared almost overnight in 1990-91, at the time of the dismantlement of the USSR. Mongolia was driven into deep recession, which was prolonged by the Mongolian People's Revolutionary Party's (MPRP) reluctance to undertake serious economic reform. The Democratic Coalition (DC) government has embraced free-market economics, easing price controls, liberalizing domestic and international trade, and attempting to restructure the banking system and the energy sector. Major domestic privatization programs were undertaken, as well as the fostering of foreign investment through international tender of the oil distribution company, a leading cashmere company, and banks. Reform was held back by the ex-communist MPRP opposition and by the political instability brought about through four successive governments under the DC. Economic growth picked up in 1997-99 after stalling in 1996 due to a series of natural disasters and declines in world prices of copper and cashmere. In August and September 1999, the economy suffered from a temporary Russian ban on exports of oil and oil products, and Mongolia remains vulnerable in this sector. Mongolia joined the World Trade Organization (WTrO) in 1997. The international donor community pledged over $300 million per year at the last Consultative Group Meeting, held in Ulaanbaatar in June 1999. The MPRP government, elected in July 2000, is anxious to improve the investment climate; it must also deal with a heavy burden of external debt.
GDP: purchasing power parity - $4.7 billion (2000 est.)
GDP - real growth rate: -1% (2000 est.)
GDP - per capita: purchasing power parity - $1,780 (2000 est.)
GDP - composition by sector: agriculture: 36%
industry: 22%
services: 42% (2000 est.)