Agriculture, mining, processed agricultural products are three pivotal segments of the economy of Mongolia. For ages, Mongolia has concentrated on animal husbandry, rearing sheep, goats, camels, and horses. Wheat, oats, barley were bought from neighboring countries. Production of crops was considered secondary.
The Soviet Union had rendered assistance to Mongolia in various sectors. With the help of Soviet union, Mongolia had developed its mineral reserves. Assistance extended by Soviet Union reached its zenith at one point of time but subsided abruptly during ’90- ’91.
Industrial production in Mongolia comprises mining operations, which includes processing of tin, gold, tungsten, molybdenum, coal and copper.
Exports and imports in Mongolia:
The Mongolia Economy depends on raw material exports to global markets. Cashmere, meat products, textile, copper concentrate are some of the prominent products exported by Mongolia. Mongolia produces approximately 30% of the total cashmere produced worldwide. In 1998, profits generated from export of copper concentrate were 47% of the total earnings from export.
Fuels, consumer goods, industrial goods, machinery, and food products, are imported by Mongolia. Economy of Mongolia is influenced to a great extent by the credits as well as aid from foreign countries. Overall external debt was USD$738.8 million in 1998.
Mongolia shared friendly relations with its neighboring country China. There used to be extensive trading between Mongolia and China at one point of time. Communist revolutions in the adjoining nations in the 20th century triggered important socio- economic changes within the country.
Last Updated on : 25th June 2013