Economy of Mongolia

The Mongolian economy is based on agriculture and mining. Mongolia has rich mineral resources, and copper, coal, tin, tungsten, and gold which account for a large part of the industrial production.

There are currently over 30,000 independent businesses in Mongolia, mainly centered around the capital city. The majority of the population outside urban areas and are engaged in subsistence herding; livestock typically consists of sheep, cattle, goats, horses, and camels. Agricultural crops include wheat, barley, vegetables, tomato, watermelon and fodder crops.

GDP per capita in 2006 was $2,100. Although GDP has risen steadily since 2002 at the rate of 7.5% in an official 2006 estimate, the state is still working to overcome a sizable trade deficit. A massive ($11 billion) foreign debt to Russia was settled by the Mongolian government in 2004 with a $250 million payment. Despite growth, the proportion of the population below the poverty line is estimated to be 36.1% in 2004, and both the unemployment rate and inflation rate are high at 3.3% and 9.5%, respectively Mongolia's largest trading partner is China. As of 2006, 68.4% of Mongolia's exports went to China, and China supplied 29.8% of Mongolia's imports.

Source: Wikipedia

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