Mongolian economy expands 17.3 percent in 2011
Mongolia’s economy is set to expand rapidly as the mineral sector gathers momentum.
Prelimanary statistics indicate that the economy expanded at a stronger-than-expected 17.3 percent growth rate in 2011, lifting GDP per capita to just over $3,000. It is the fastest annual rate of growth in the history, following a massive growth of 20.8 percent year-over-year in 3Q2011.
The largest contribution came from mining investment and booming exports as Mongolia is developing its vast mineral wealth. The total industrial output climbed by 9.7 percent in 2011, supported by strength in motor vehicles and machinery, following a 10 percent increase in 2010. Mining and quarrying production rose by 9.5 percent. The manufacturing sector remains on solid footing which hiked 11.6 percent. The Ministry of Food, Agriculture and Light Industry has reported that Mongolia enjoyed the biggest harvest in its history in 2011 after low production of 2010 due to natural disasters. Cereal production was up by 25.6 percent, potato output by 20.1 percent and that of vegetables by 20.3 percent.
GDP Contribution
Source: National Statistical Office
Mongolia has only below 3 million people and yet it is building one of the world’s five biggest copper mines in the world. Given the size of natural resources, GDP per capita is liable to explode.
What we expect is that Mongolia will continue its current growth path and the real GDP growth of 2012 could even pass that 17.3 percent if 2012 passes with no huge decrease in commodity prices. Some analysts even expect that it will reach as high as 23 percent this year. The International Monetary Fund estimates that the Mongolian economy will grow 14 percent on average through 2012-2016.
GDP at 2005 constant prices, billion MNT
Source: National Statistical Office
Prelimanary statistics indicate that the economy expanded at a stronger-than-expected 17.3 percent growth rate in 2011, lifting GDP per capita to just over $3,000. It is the fastest annual rate of growth in the history, following a massive growth of 20.8 percent year-over-year in 3Q2011.
The largest contribution came from mining investment and booming exports as Mongolia is developing its vast mineral wealth. The total industrial output climbed by 9.7 percent in 2011, supported by strength in motor vehicles and machinery, following a 10 percent increase in 2010. Mining and quarrying production rose by 9.5 percent. The manufacturing sector remains on solid footing which hiked 11.6 percent. The Ministry of Food, Agriculture and Light Industry has reported that Mongolia enjoyed the biggest harvest in its history in 2011 after low production of 2010 due to natural disasters. Cereal production was up by 25.6 percent, potato output by 20.1 percent and that of vegetables by 20.3 percent.
GDP Contribution
Source: National Statistical Office
Mongolia has only below 3 million people and yet it is building one of the world’s five biggest copper mines in the world. Given the size of natural resources, GDP per capita is liable to explode.
What we expect is that Mongolia will continue its current growth path and the real GDP growth of 2012 could even pass that 17.3 percent if 2012 passes with no huge decrease in commodity prices. Some analysts even expect that it will reach as high as 23 percent this year. The International Monetary Fund estimates that the Mongolian economy will grow 14 percent on average through 2012-2016.
GDP at 2005 constant prices, billion MNT
Source: National Statistical Office
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