Over the past 20 years, Mongolia has transformed itself from a socialist country to a vibrant multiparty democracy with a booming economy. Mongolia is at the threshold of a major transformation driven by the exploitation of its vast mineral resources. The Mongolian economy has achieved remarkable progress over the last two years and its medium-term prospects are promising. It has emerged as one of the fastest growing economies in the world over the last two years and rising incomes have helped to reduce the poverty rate by 11.3 percentage points during the period. The economy is expected to show double digit growth again in 2013 despite the unfavorable external environment. The medium-term prospects are also promising, given the expected ramp-up of major mineral production including copper, coal, and gold.
The share of mining in GDP today stands at 20 percent, twice the ratio of a decade ago. The economy grew by 12.4 percent in 2012, compared to 6.4 percent GDP growth in 2010. GDP is expected to grow at a double digit rate over the period from 2013 to 2017.
Indicative assessment of economic policies, Mongolia’s economic policy stance can be compared with those in other peer countries in the region. This box compares key economic parameters and policy variables between Mongolia and other countries in the East Asia and Pacific countries.
Source: World Bank Group in Mongolia, Mongolia Economic Update, November 2013