Mongolian economic situation introduction

1. Mongolian
Economy
MA6N0237
NARA

2. Content
1. Introduction of Mongolia
2. Economy statement
3. Factors to influencing Mongolian economy
4. Conclusion

3. Introduction of Mongolia

4. Area total :
1’564’122𝑘𝑚2
Water : 0.42%
Population :
3’081’678
World’s 19th
largest
country

5. Official Language : Mongolian
Capital : Ulaanbaatar
State of Government : Semi-presidential Representative
Republic
Provinces of Mongolia : Divided to 21 provinces ( aimag ).
40% of population lives in Ulaanbaatar, capital of Mongolia
Mongolia is established in
1206. ( 811 years ago )
Declared our
independence in 1911. (
106 years ago )

6. About Mongolian revolution of
socioeconomic phases
Kingdom
governance
Exchanging
system
1206 - 1921
Great
Mongolia
One-party
governance
Socialism
economy
1921 - 1990
People’s
Republic
of
Mongolia
Parliamentary
governance
Market
economy
1990 – still
Mongolia

7. Economic statement
 GDP
 Inflation
The economy grew by 5.3% in the first half of 2017, recovering
strongly from only 1.2% growth in 2016. Services lifted GDP by
4.3 percentage points, and agriculture by 1.0 point. Coal
production soared, with coal exports increasing by more than
fourfold. However, mining as a whole slumped as copper
concentrate production languished, causing the larger industry
sector to subtract marginally from growth. On the demand side,
investment, mainly into mining, contributed 13.2 percentage
points to growth, and consumption added 1.6 points. Net
exports subtracted almost 9.6 points as imports rose by 37.4% in
tandem with mining investment.

8. Mongolian GDP growth
The Gross Domestic Product (GDP) in Mongolia was worth 11.16 billion US dollars in
2016. The GDP value of Mongolia represents 0.02 percent of the world economy. GDP in
Mongolia averaged 4 USD Billion from 1981 until 2016, reaching an all time high of
12.58 USD Billion in 2013 and a record low of 0.77 USD Billion in 1993.
figure 1. USD billion, per year
Source: Tradingeconomics.com / World Bank

9. Compared Mongolian GDP to other countries
table 1. GDP growth (%) per year
Country 2017
f
2018
f
China, People's Republic of 6.7 6.4
Hong Kong, China 3.6 3.2
Korea, Republic of 2.8 2.8
Mongolia 4.0 3.0
Taipei , China 2.0 2.2
Average 6.0 5.8
f – forecast number
Source : Asian Development Bank

10. Mongolia Inflation Rate
figure 2. (%) per year, last ten years
Source: Tradingeconomic.com / MongolBank

11.  Mongolia Inflation Rate
In Mongolia, the most important categories in the
consumer price index are food and non-alcoholic
beverages (39.7 percent of the total weight); clothing,
footwear (15.3 percent) and housing, water, electricity,
gas and other fuels (10.8 percent) health (1.8 percent )
transport (9.0 percent )etc.

12. Compared Mongolia Inflation to other countries
table 2. Inflation (%) per year
Country 2017
f
2018
f
China, People's Republic of 1.7 2.4
Hong Kong, China 1.7 1.8
Korea, Republic of 1.8 1.9
Mongolia 3.0 3.4
Taipei , China 1.1 1.2
Average 1.7 2.3
Source : Asian Development Bank
f – forecast number

13. Factors to influencing Mongolian economy
Economic activity in Mongolia has traditionally been based
on agriculture and livestock.
Mongolia also has extensive Mineral deposits: copper, coal,
molybdenum and gold account for a large part of industrial
production.
And also one of the biggest department is Foreign Trade.

14. Agriculture
figure 3. The Agriculture % of GDP of Mongolia is 16.5 (%) with a global rank of 59.
• Compared to other counties of ranked from 54 – 64.
- % of GDP of
India – 17.4,
Bangladesh - 17.2,
Nicaragua - 17.1,
Mauritania -16.9,
Tuvalu - 16.6,
Mongolia – 16.5,
Faeroe Islands - 16.0,
Dominica - 15.7,
Morocco - 15.1,
Senegal -14.9,
Egypt - 14.5 (%)
Mongolia's agriculture: had a negative growth (decline) of 3.51% since the end of the
Great Recession

15. Agriculture products:
Barley Forage crops Cashmere

16. Livestock
Last season of 2016, 61’549’200 of heads livestock were counted.
figure 4. Total count, species, million, per year
2.6 2.9
0.3
20.1 19.2
3 3.4
0.3
23.2
22
3.3
3.8
0.4
24.9
23.6
3.6 4.1
0.4
27.9
25.6
0
5
10
15
20
25
30
Horse Cow Camel Sheep Goat
2013 2014 2015 2016

18. Strategically important Mineral deposits :
table 3. Mongolian main deposits, million tones,

20. Foreign Trade
figure 5. USD million, comparing import, export index
- Total turnover - Import
- Export - Balance
Source: national statistical office of Mongolia

21. Exporting product
- Gobi Cashmere
- Yalguun Silk
- Mineral products
- Precious stones
- Hand made products

23. Yalguun Silk

25. Oogii Luxury Brand
Made by leather high heels and bags

27. By the way
she’s the
Founder
and CEO

28. Exporting products
table 4. product type, USD million, end of the year
Mineral products 2016
Coal 973.0
Copper concentrate 1 607.0
Crude oil 337.2
Precious stones 761.5
Mineral products, precious stones and metal ornaments are to take of
86.3% from 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
(80% of total exports). Others include: Canada and Russia.

29. Importing Products
table 5. product type, USD million, end of the year
Products 2016
Diesel fuel 254.0
Auto gasoline 192.9
Basic metallic products 210.9
Machinery, mechanical equipment, electric
appliances
680.4
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
Russia (22% of total) and China (26%). Others include Japan, USA
and Germany.

30. Conclusion
 Mongolian Economy situation is nowadays GDP per person –
3686.45 USD in our country. Also comparing with other
developing country and developed countries,
 China – 8123.18 USD
 Mongolia – 3686.45 USD
 Philippines – 2951.07 USD, basically Mongolian index is average
performance.
 Our important useful exporting are mineral products, but we still
exporting raw materials. This is lack of Mongolian Economy.
Mining deposits and any other small and medium enterprises have
to understand that raw material is main investment of our/their
future and Mongolian Economy.
 I see a lot of opportunities from new brands, new industries.