Section:Economy

Illustration

Mongolia’s economy is structured around its abundant natural resources, mining, agriculture, and service sectors. While mining remains the dominant sector in the national economy, agriculture is a traditional and essential component, closely tied to the livelihoods and well-being of the population. The agricultural sector contributes approximately 10 to 15% of the country's Gross Domestic Product and employs around 25 to 30% of the national workforce. Livestock husbandry accounts for 80 to 90% of this sector and is the main source of raw materials for food production, textiles, and leather goods, and supports the growth and sustainability of the processing and service industries.

Traditional nomadic livestock herding remains the dominant practice in Mongolia. The nomadic way of life, developed over centuries in harmony with the natural and climatic conditions of the country, represents a unique aspect of Mongolian culture. Even today, such a lifestyle, which plays a central role in the everyday lives of rural herders, is more than just a means of living but also embodies a multifaceted set of characteristics, including a unique attitude toward nature, an organized system of labor, a distinct philosophy of living, and specific patterns of social interaction. Herders have developed sophisticated methods for monitoring environmental and climatic changes and for planning seasonal movements such as wintering and spring pasturing, all of which are essential to ensuring livelihood stability. In recent years, herders have not only preserved their traditional livelihoods but have also actively sought new ways to improve their quality of life by embracing technological advancements.

The crop farming sector is crucial for supplying the population with safe, high-quality food and forms the foundation of national food security. Besides providing raw materials for food products, the sector creates new jobs linked to food production, reduces import dependence by enhancing domestic food output, and contributes to the economic and social stability of the country.

The infrastructure development of Mongolia relies on several key sectors, including transportation, energy, and communications. A comprehensive network of roadways and railways is crucial for transportation, with the road network being vital for economic stability, social advancement, and public safety at both the national and regional levels. Meanwhile, railway infrastructure is particularly important for exports and international trade. The energy sector serves as the backbone of social development and national security, while the communications sector is essential for modern society, economic growth, and everyday life.

Foreign relations represent a vital dimension of Mongolia’s sovereignty, national security, and economic development. The country maintains friendly relations with its two neighbors, Russia and China, while actively advancing its 'Third Neighbor' policy to expand cooperation and diplomacy with other countries around the world.

This chapter includes 14 maps related to various economic aspects of Mongolia. The maps provide a general overview of the livestock husbandry, crop farming, infrastructure, and foreign relations of the country.