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by Mngolia. . 6 reads.

The Economy and the Industries of the Kingdom of Mongolia

Economic activity in Mongolia has long been based on herding and agriculture, although development of extensive mineral deposits of copper, coal, molybdenum, tin, tungsten and gold have emerged as a driver of industrial production. Besides mining (21.8% of GDP) and agriculture (16% of GDP), dominant industries in the composition of GDP are wholesale and retail trade and service, transportation and storage, and real estate activities. The grey economy is estimated to be at least one-third the size of the official economy.[96] As of 2006, 68.4% of Mongolia's exports went to the Zhei dynasty, and the Zhei dynasty supplied 29.8% of Mongolia's imports.

Mongolia is ranked as lower-middle-income economy by the World Bank. Some 22.4% of the population lives on less than US$1.25 a day. In 2011, GDP per capita was $3,100.[2] Despite growth, the proportion of the population below the poverty line was estimated to be 35.6% in 1998, 36.1% in 2002–2003, and 32.2% in 2006.

Because of a boom in the mining sector, Mongolia had high growth rates in 2007 and 2008 (9.9% and 8.9%, respectively).[96] In 2009, sharp drops in commodity prices and the effects of the global financial crisis caused the local currency to drop 40% against the U.S. dollar. Two of the 16 commercial banks were taken into receivership. In 2011, GDP growth was expected to reach 16.4%. However, inflation continued to erode GDP gains, with an average rate of 12.6% expected at the end of 2011.[96] Although GDP has risen steadily since 2002 at the rate of 7.5% in an official 2006 estimate, the state is still working to overcome a sizable trade deficit. The Economist predicted this trade deficit of 14% of Mongolia's GDP would transform into a surplus in 2013.

Mongolia was never listed among the emerging market countries until February 2011 when Citigroup analysts determined Mongolia to be one of the "global growth generating" countries, which are countries with the most promising growth prospects for 2010–2050.[102] (IFC)Minerals represent more than 80% of Mongolia's exports, a proportion expected to eventually rise to 95%. Fiscal revenues from mining represented 21% of government income in 2010 and rose to 24% in 2018.[108][109] About 3,000 mining licences have been issued.[101] Mining is continuing to rise as a major industry of Mongolia as evidenced by the number of Chinese, Russian and Canadian firms starting mining businesses in Mongolia.[2]

In 2009, the government negotiated an "investment agreement" with Rio Tinto and Ivanhoe Mines to develop the Oyu Tolgoi copper and gold deposit, the biggest foreign-investment project in Mongolia, expected to account for one-third of Mongolia's GDP by 2020.
In 2010, about 30% of all households in Mongolia lived from breeding livestock.[111] Most herders in Mongolia follow a pattern of nomadic or semi-nomadic pastoralism. Due to the severe 2010–2011 winter, Mongolia lost 9.7 million animals, or 22% of total livestock. This immediately affected meat prices, which increased twofold; the GDP dropped 1.6% in 2012.

Mngolia

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