Economy

Mongolia’s resource-based economy is forecast to be one of the fastest growing in the world over the next two decades. The two big stories of 2011 were Tavan Tolgoi, a coal mine now ramping up its production, and Oyu Tolgoi, a copper and gold mine that should begin operations in 2013. The IMF expects investment in these projects, and growth in spinoff industries, to drive GDP growth to 12% in 2012, and the government projects even higher growth, at 25%. However, economists are warning of “Dutch disease” whereby overreliance on resource exports crowds out manufacturing and boosts inflation. Investing in infrastructure and educating citizens to participate in a modern economy will be key to achieving diversified growth. This chapter features interviews with Ch. Ganhuyag, Vice-Minister of Finance and Founder, Mongolia Economic Forum; B. Ganzorig, Chairman, Foreign Investment and Foreign Trade Agency; Jim Dwyer, Executive Director, Business Council of Mongolia (BCM); and J. Odjargal, Chairman, MCS Group. It also includes a viewpoint from B. Byambasaikhan, CEO, Newcom Group.