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.
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.