Mongolian Economy

The economy of Mongolia was once dependent on agriculture and livestock. But today Mongolian economy is hugely dependent on mining, making up 30% of all Mongolian industry. Mongolia has extensive mineral deposits: copper, coal, gold, molybdenum, tin, and tungsten. Another important industry is the production of cashmere. Mongolia is the world's second-largest producer of cashmere, with the main company, Gobi Cashmere, accounting for 21% of world cashmere production as of 2006. 

Mongolian Economy during Socialism:
Mongolian economy was hugely influenced by Soviet Union Soviet assistance, at its height one-third of Gross domestic product. Also Mongolia has undergone significant cultural, scientific, and technological changes during the socialist era. Then large-scale campaigns such as the Cultural Revolution, the Collective Movement, and the Atar movement took place throughout the country. It has brought about drastic changes in our country’s population, culture, lifestyle, economic structure, and system.
   In 1939, Choibalsan Khorloo became the leader. Under Soviet pressure, he confiscated private property. In the 1960s, relations between the USSR and China broke down and Mongolia became a party to the Soviet Union. As a result, the Soviet Union’s influence more increased in Mongolia. Mongolia’s economy grew rapidly in the 1960s, making it the first country in Asia to become universally literate. 

Mongolia Economy after Democracy & Today
However, after market-oriented democracy in the early 1990s, the domestic private sector has vastly expanded in all key sectors (banking, property, telecom, food, and beverage, etc.) compared to the socialist period and foreign direct investment has shown clear, albeit sporadic, potential.
   Mongolia joined the World Trade Organization (WTO) in 1997. In 2015 real GDP per capita more than doubled its level in 1990. Participation in economic activities also increased with private investment rising from 12 percent of GDP in 1990 to above 25 percent in 2005 and even 40 percent in 2012. Access to banking services is one of the highest in the world and financing expanded consistently.
Mongolian economic growth and development have been impressive (highest GDP growth in the world in 2011 at over 17%) but extremely volatile (flat growth in 2016 with a historic $5.5 billion multilateral support package initiated in 2017).