Mongolia has population of 2.8 million and is located in east central Asia. It covers 1.56 million square kilometers in area and shares a 4,677 km border with China to the south and a 3,485 km border with Russia to the north.
Mongolia is famous for its wild nature, nomadic culture, hospitable people and its rich history. With the fall of the Soviet Union, Mongolia began dramatic political reforms and transferred into a democratic free market economy in the 1990’s.
Mongolia is a resource rich country, not only for coal, but other minerals including copper, gold, iron ore, lead and molybdenum.
Mongolia is an economy that is positioned for significant growth in coming years. In mid-2014 Mongolia signed a number of tripartite infrastructure agreements with Russia and China covering significant upgrades to rail infrastructure and border crossings.
These agreements were further enhanced in mid-2015 where the Governments of Russia, China and Mongolia signed a further Memorandum which compiled a guideline for building a trilateral Economic Corridor through Mongolia. In addition, framework agreements were also signed covering the facilitation of international trade along this Economic Corridor and on cooperation for ports of entry between the three nations.
The trilateral Economic Corridor is aimed at improving levels of trade not only between the three nations but increasing land based trade between Central Asia and Europe. The Economic Corridor integrates China’s New Silk Road with Russian rail planning and Mongolian Rail Policy.
The impact of this new rail infrastructure will be significant on the Mongolian economy through opening up the nation to access export markets and thereby unlocking its natural resources and facilitating the development of other industries including manufacturing, raw materials, agriculture, tourism, and more.
Economic Data for Mongolia released for the 2014 full year has shown:
GDP Growth in 2014: 7.8% (2013: 11.7%)
Average Inflation in 2014: 12.8% (2013: 8.6%)
Main export market (% 2014): China 87.8%, (2013: 86.8%)
Government Budget: In Deficit
Exports in 2014: US$5.7 Bil (2013: US$4.2 Bil)
Total Foreign Investment 2014: US$382 M (2013: US$2.1 Bil)
(Source: Publicly available data, Bank of Mongolia, Wold Bank, China Daily.)
Mongolia as an Investment Destination
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Foreign Exchange Rates
Minerals Law (2014)
Allows explorations licences to be transferred, with no restriction on juniors using licences as security for capital raisings.