Mongolia has been on an economic rollercoaster – from 20% growth, to falling to 5% in 2011 alone. In 2014, nominal public debt to GDP rose to 77.4%, from 31% just three year’s prior. The country’s small economy, less than a third the size of North Korea has certainly seen its ups and downs, with a significant impact on employment and training.
An economy dependent on resources
Mongolia has faced several challenges on the economic front. In the first half of 2015, the country’s economic growth has fallen to just 3% – mirroring the slowing economy of its main customer, China. If this figure persists for the rest of the year, it will make it Mongolia’s slowest pace of expansion for six years, according to Reuters Africa.
Coal and copper prices, their two main commodities, have fallen 20-30% over the last year, with a drop in demand has also hitting the country hard. Mongolia also has to contend with falling foreign investment because of China’s waning demand for commodities and caution from investors because of government disputes with miners. But mining could also be the key to recovery. Read More