Mongolia

New rail links with Russia and China and a planned overhaul of the road network underline progress in Mongolia’s plans to use the recent surge in resource growth to improve infrastructure and transport. However, there are concerns that political wrangling could delay the implementation of ambitious projects.

A wave of new infrastructure and phased housing projects in Mongolia looks set to give the country’s construction sector a huge boost while also generating wide-ranging opportunities for foreign investors in the building industry.

Healthy growth in non-mining-related sectors of Mongolia’s economy and progress in plans for a multi-billion dollar industrial complex suggest the industry sector is on track towards contributing to the country’s goal of economic diversification.

Coal production continues to rise in Mongolia amid the ongoing development of large mining projects aimed at increasing regional demand, yet the energy sector has also began exploring greener alternatives.

Underlining the rapid evolution under way in Mongolia's telecommunications sector, the state-run, land-line telecoms provider is cutting back while the main mobile players are introducing new features and announcing major international partnerships.

Momentum in Mongolia’s mineral sector helped GDP growth surge in 2011, however, extra fiscal vigilance is needed this election year as overheating could lead to high inflation, exchange rate volatility and wage pressures. According to World Bank estimates in late January, growth reached 14.9% in 2011 and will be 15.1% in 2013.