Mongolia’s population is currently around 2.8 million (roughly the same as Rome, Kiev or Chicago), which makes it the 137th most populated country in the world. Measured in land area however it ranks 19th with 1.56 million km2 (in line with Chile and Iran).
Only 17% of this vast territory has been properly explored but already Mongolia is among top 10 mineral richest countries in the world. Little of these massive reserves are actively mined however and herein lies Mongolia’s biggest opportunity and biggest challenge; how to exploit these resources in a way that benefits the country as a whole.
Today, Mongolia’s prospects ,however, look gloomy in a near term with weak economic growth and very low Foreign Direct Investments. But, it used to be the world’s best performing stock market in 2010 and the second best performing currency. So, with the general election in place in June 2016, we hope this might be a catalyst for the change.
Going forward, Mongolian needs to go through a massive restructurings.......
- Shoring up government
- Allowing a flexible exchange rate
- Strengthening the banking system
- Protecting the poor during the adjustment
Overall, the roads to regain trust from investors are under way. And, many challenges remain. With the ASEM meetings will be in the middle of July, we hope Government will find solutions to improve relations with foreign communities.
Please visit Macroeconomic Research for recent developments.