Mongolia’s economy has experienced robust growth in the first quarter of 2023, with a 7.9% increase in Gross Domestic Product (GDP) compared to the same period last year. This significant expansion can be attributed to various sectors, particularly manufacturing and mining, which have contributed to the overall positive performance of the country’s economy.
According to official data released by the National Statistical Office of Mongolia (NSO), the manufacturing sector saw a notable surge in production, resulting in a 13.6% increase in output compared to the previous year. This growth is particularly impressive when compared to a 4.0% increase recorded in the same period of 2022. It is also noteworthy that this is the highest growth rate since 2015, when the sector experienced a 5.6% expansion.
The mining sector, including the coal and copper industries, played a crucial role in driving the country’s economic growth. In the first quarter of 2023, mining witnessed a 7.9% increase compared to the previous year, surpassing the 2022 growth rate of 3.9%. This growth can be attributed to increased exploration activities and improved mining efficiency.
The diversification of Mongolia’s economy is evident in the growth of other sectors as well. The agriculture sector, including livestock and crop production, experienced a 0.8% increase compared to the same period last year. Additionally, sectors such as renewable energy, construction, and services also contributed positively to the overall economic performance, with growth rates of 5.3%, 3.8%, and -0.7%, respectively.
The positive growth trends in Mongolia’s economy are reflected in the expansion of various industries. The added value of the manufacturing and mining sectors increased by 230.3 billion Mongolian Tugriks (MNT) and 629.1 billion MNT, respectively, in the first quarter of 2023 compared to the previous year. These figures represent a growth rate of 12.5% and 14.4%, indicating a strong upward trend.
The services sector also witnessed significant growth, with a 3.0% increase compared to the same period last year, amounting to 199.0 billion MNT. This expansion was mainly driven by the financial and information sectors, among others.
The positive economic performance in the first quarter of 2023 is a result of the government’s focus on diversifying the economy and attracting foreign investment. Policies aimed at stimulating manufacturing, mining, and other key sectors have played a crucial role in driving economic growth and improving the country’s overall economic outlook.
Looking ahead, Mongolia’s economy is expected to maintain its positive momentum, supported by ongoing investments, increased production, and favorable market conditions. As the country continues to diversify its economy and attract foreign investment, it is well-positioned for sustained economic growth and development in the coming years.
Disclaimer: The data and figures used in this article are based on the information available up until September 2021, and the current economic situation may have changed since then.