Economy

Given its small, open economy with abundant resources including coal, copper, gold, zinc and fluorspar, Mongolia faces the same boom-and-bust cycles of any resource-dependent nation. The country has the natural endowments to provide opportunities for its 3m citizens; however, managing fluctuating growth rates, ranging from -1.3% in 2009 to 17.3% in 2011, as well as investment, trade and fiscal revenues, remains a challenge. Drawing on support from its two neighbours in the short term, the government is trying to ensure a soft landing for the economy following a significant reduction in foreign investment. That said, a rebound in investment is expected for 2015 due to a raft of new legislation taking effect. As the government consolidates its expansionary policies, it will need to accept slower growth in the interests of economic stability.

This chapter contains interviews with Jim Dwyer, Executive Director, Business Council of Mongolia; Graeme Knowd, Associate Managing Director Asia, Corporate & Financial Institutions, Moody’s Investors Service; and L. Boldkhuyag, Chairman, Bodi Group.