Economics overview and investment environment of Mongolia

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• Economics overview and investment environment of
  Mongolia

Presented by Mr. DUGARJAV. G Vice Chairman,
Foreign Investment and Foreign Trade Agency
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• Economics overview

GDP per capita (US Dollars) GDP growth
(percentage)
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Economics overview

• The economic growth of Mongolia is
• projected to slow down to 3-4 in 2009.
• The governments macroeconomic program
• 1. to restore economic stability through fiscal
  and monetary policies
• 2. to protect the poor and preserve social
  stability through improving the social safety net.

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Economics overview

• The governments program is built on
• four main planks
• Budget adjustment for this year and strengthening
  the institutional framework for fiscal policy.
• Proactive monetary policy to safeguard
  international reserves.
• Improving the social safety net.
• Further strengthen the banking system.

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Economics overview

• Results by the May 2009
• Actual revenue was only 1.3 percent lower than
  planned, which shows that the amended budget
  revenue projections were realistic
• The trade deficit is gradually narrowing
• Exchange rate depreciation halted and the Bank of
  Mongolia is able to add to its international
  reserves.
• Inflation is falling continuously reaching 12.6
  percent in April 2009
• Stand-By Agreement was reached with the IMF,
  supported by several other development partners.

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Investment Environment
Europe Central Asia avg. ranking 76
East Asia avg. ranking 83
Landlocked avg. ranking 107
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Investment Environment
Major reforms recognized by the Doing Business
2009 report are Facilitation of trade by
creating a single window for customs clearance,
introducing a partial system of risk management,
and implementing post clearance audits. The
changes have reduced both the time and the
documents required for exporting and
importing. Eased the tax burden on employers by
reducing their social insurance contribution from
19 percent to 11 percent of gross salaries.
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Why to invest

• The Government of
• Mongolia is committed
• to create better
• investment
• environment
• Close location to two
• enormous markets
• Rich mineral resources
• Educated  labor force

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Mining

• Mongolias vast territory has over 6000 mineral
  deposits
• 15 deposits are named as strategically
  significant deposits
• Mining produces 55 percent of the export

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Agriculture
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Construction and Infrastructure

• The Government has planned to
• carry out the following major
• infrastructural projects such as
• New international airport
• Horizontal axis of paved roads network
• Railway lines connecting major mining sites

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• THANK YOU FOR YOUR ATTENTION

Sambuu Street 11, Government Building 11
Ulaanbaatar, Mongolia