economic development

by sumpteretc

This article points out several interesting facts about Mongolia’s economy. Although it grew at an astounding 9.9% in 2007, things are slowing down, and the impending double-digit inflation will certainly dampen the economic outlook. Imported food and oil, in particular, jumped in price by 41.3%, a disturbing statistic for a country that imports 80% of its food. Grants and subsidies are all that is keeping Mongolia from slipping into a major trade deficit.

Mongolia now has 40 million head of livestock. That’s about 13 times the human population. About 20 million of that is goats, whose specialization is turning grasslands into desert–not a promising future, there.

There is still a great deal of difficulty in extracting mineral wealth, primarily because of the great dependence on foreign investment to build the necessary infrastructure. Foreign investors are wary, however; as the government has tried to renegotiate contracts mid-operation.

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