Mongolia Economic Forecast

Throughout history, the Mongolia economy has depended on agriculture, fisheries, farming, and herding cattle. However, this country is also known for its rich natural resources of copper, gold, uranium, tungsten, tin, fluorspar, coal, and molybdenum. Today, Mongolia has a large industrial production and strong Foreign Direct Investment but at its height with Soviet aid, approximately 35% of the country’s Gross Domestic Product or GDP had virtually vanished overnight during 1990 and 1991.

Throughout history, the Mongolia economy has depended on agriculture, fisheries, farming, and herding cattle. However, this country is also known for its rich natural resources of copper, gold, uranium, tungsten, tin, fluorspar, coal, and molybdenum. Today, Mongolia has a large industrial production and strong Foreign Direct Investment but at its height with Soviet aid, approximately 35% of the country’s Gross Domestic Product or GDP had virtually vanished overnight during 1990 and 1991. At this time, the USAR was being broken down, followed by a 10-year period of extensive recession, poor political involvement, and numerous natural disasters. This along with prices falling for the country’s exports, its primary sector, along with the people being opposed to privatization, problems continued and even worsened. However, the GDP saw an average 9% growth from 2004 to 2008 in large due to increased copper prices and greater gold production. This country was then hit with the fallout from the global financial crisis in late 2008 but today, an expansion of involvement and integration into the regional economic and trade structures of Asia have helped improve Mongolia’s economy.

Mongolia GDP Forecast

Mongolia suffered great losses over the years but thanks to new reforms, adopting a free market economy, and allowing privatization that was once run by the state, things are beginning to turn around. For the Mongolia GDP (Gross Domestic Product, Current Prices, US Dollar), 2008 was reported at $5.15 billion in US dollars, which was followed by a decline of 18.36% that pushed 2009 to a GDP of $4.203 billion. Because of this, the country was ranked worldwide as number 145. For 2010, experts now say that Mongolia should experience a GDP of $5.54 billion, up slightly from the prior year and for 2015, the change is more significant, closing at $11.812 billion, US dollars.

Mongolia Unemployment Forecast

Out of the 3.04 million people that make up the Mongolia population, it is estimated that only 1.7 work. For the people among the labor force, the primary sectors include agriculture, industry, and services. Even so, because of the populace of Mongolia, the Mongolia unemployment rate is around 5.6%. While this number is relatively low when compared to other countries, it is an increase over reported numbers of 3% for 2007.

Mongolia Inflation Rate Forecast

As far as the Mongolia inflation rate, 2010 is being forecasted around 7.34%. During 2008, inflation was considerably higher at 26.81%. Over the next 24 months, a significant reduction of 76.62% occurred, which put the inflation rate for 2009 at 6.267%, making this country number 53 for world rankings. Now, for the future of Mongolia from an inflation standpoint, forecasted numbers for the year-end 2015 are at 5%.

Mongolia Current Account Balance Forecast

Numbers that make up the Mongolia current account balance consist of all transactions with the exception of those that contain financial or capital items. This figure at the end of 2008 was a negative $0.72 billion, which was reported in US dollars. For the next year, a reduction of 67.45% was experienced, at which time 2009 closed the account balance at a negative $0.235 billion and landing in the number 88 spot for rankings worldwide. Experts state that the current account balance for this country in 2010 will be minus $0.37 billion although for 2015, numbers are back in the positive at $0.568 billion.