• GDP: US$1.9 billion (2005).
• Main exports: Minerals, livestock, animal products and textiles.
• Main imports: Machinery and equipment, fuels, food products, industrial consumer goods, chemicals, building equipment, vehicles and textiles.
• Main trade partners: China (PR), Korea (Rep) and Russian Federation.

The vast bulk of Mongolia’s working population is engaged in animal herding. Otherwise, large farms (formerly state owned) produce crops for domestic consumption, principally cereals, potatoes and vegetables. Industrial activity is dominated by production of food, hides and wool, especially high-quality cashmere (much of which is consigned for export) and mining.

There are large deposits of coal which meet most of Mongolia’s energy requirements, as well as copper, fluorspar, tungsten, tin, gold, lead and molybdenum, a rare metal of which Mongolia is one of the world’s largest producers. The output of the copper-molybdenum mine at Erdenet accounts for around half of Mongolia’s export earnings. It is likely that there are other large deposits as yet undiscovered. Limited oil production began in 1997, but Mongolia still relies on Russia to meet most of its domestic needs. Textiles and light engineering complete Mongolia’s main economic activities.

The country suffered badly from the collapse of the former Soviet Union: while Mongolia was not a constituent part of the Soviet Union, its economy was especially dependent on the USSR, with which it conducted 80% of its trade; most of the rest was with its fellow members of the Council for Mutual Economic Assistance (COMECON).

After some initial resistance by the MPRP (Mongolia’s historic ruling party), most of the economy has been steadily transferred to the private sector. Russia and China are now Mongolia’s principal trade partners and Korea (Rep) is a major investor.

In 1991, Mongolia joined the IMF and World Bank; in 2000, it became a shareholder (but not a ‘country of operation’) in the European Reconstruction and Development Bank. The EBRD provides support through the Mongolian Co-operation Fund. It is also a member of the Asian Development Bank and receives aid from the EU’s technical assistance programme.

Suits are recommended; mediumweight for summer, and heavyweight for winter. Translator services should be arranged prior to departure for Mongolia, although an increasing number of executives speak English, and Russian is widely spoken.

Office hours: Mon-Fri 0900-1800.

Mongolian Chamber of Commerce and Industry
Freedom Square 1, Democracy Street 1, Ulaanbaatar 210538, Mongolia
Tel: (1) 312 371 or 501.
Website: www.mongolchamber.mn

For further information, contact the Mongolian Chamber of Commerce and Industry (see Commercial Information below).