Economy

The main event for Mongolia’s economy in 2013 will be the opening of the Oyu Tolgoi copper and gold mine, which many see as a make-or-break moment. Coal, presently the country’s most important commodity, declined in price by some 15% in 2012, with volumes slipping by around 22%. In 2012 the current account deficit reached 16.7%, excluding mining-related imports, according to the IMF, compared to 11.3% in 2011 and 5.7% in 2012, with volumes slipping by around 22%. Exports fell from $4.7bn in 2011 to some $4.4bn in 2012. However, Mongolia seems set to see a commodity boom in 2013, with one high-profile mine starting production, and another planning to ramp up coal extraction. Yet mining is not the only sector with greater economic potential. A number of other areas also seem ripe for development, including tourism, agribusiness and renewable energy. This chapter includes interviews with Ch. Ulaan, Minister of Finance; P. Batsaikhan, Chairman and President of the Shunkhlai Group; and Jim Dwyer, Executive Director of the Business Council of Mongolia.