Economy in Mongolia

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Economy—overview: The government has embraced free-market economics freezing spending easing price controls liberalizing domestic and international trade. Mongolia's severe climate scattered population and wide expanses of unproductive land however have constrained economic development. Economic activity traditionally has been based on agriculture and the breeding of livestock. In past years extensive mineral resources had been developed with Soviet support; total Soviet assistance at its height amounted to 30% of GDP but disappeared almost overnight in 1990-91. The mining and processing of coal copper molybdenum tin tungsten and gold account for a large part of industrial production. The Mongolian leadership has been soliciting support from foreign donors who pledged some $250 million in aid in October 1997. Economic growth picked up in 1997 after stalling in 1996 due to a series of natural disasters and declines in world prices of copper and cashmere.

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