Mongolia overview

Share this page:
Green landscape in Mongolia

Mongolia became an EBRD country of operations in 2006. The EBRD supports Mongolia in its transition to a full market economy and is currently the largest foreign investor in the country. All projects that we have supported have been in the private sector and almost all of these involve local entrepreneurs or banks.

One of the priorities for the EBRD in Mongolia is to support infrastructure projects with private sector participation, including public-private partnerships (PPPs).

The main priorities of the EBRD's work in Mongolia are:

Diversification: The EBRD will aim to expand its engagement with the non-extractive private sector.

Sustainable growth: We support the financial sector through small and medium-sized enterprise (SME)-debt programmes, equity and technical assistance.

Responsible mining and institutions: The EBRD continues to offer debt and equity finance to reputable mining companies which meet its high standards and will support institutional building. All of our support in the mining sector has thus far been directed to local enterprises.

Infrastructure and private sector development: The EBRD supports Mongolia's infrastructure-building "including through the development of renewable energy“ and promotes private sector involvement where possible.

The EBRD's latest Mongolia strategy was adopted on 7 June 2017

Mongolia's policy response to the coronavirus crisis

The EBRD is monitoring Mongola's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

Current EBRD forecast for Mongolia's Real GDP Growth in 2020 -1.0%

Current EBRD forecast for Mongolia's Real GDP Growth in 2021 5.4%

Economic growth in Mongolia moderated to 5.1 per cent in 2019 from 7.2 per cent in 2018 on account of a weaker contribution from mining. Growth continued to be driven by private consumption and investment (primarily foreign direct investment into mining). The pandemic exposed Mongolia’s key vulnerabilities: extreme dependence on China as its main export market (accounting for 93 per cent of total exports in 2019), and a narrow specialization in exports of copper, coal and gold. Within the first three months of 2020, exports declined by around 42 per cent year-on-year (with coal exports contracting by 62 per cent) as a result of weaker demand and partial border closure for freight cargo. Partial lockdown measures involved the closures of most public places from mid-February till end-April, significantly constraining household demand. The negative impact of the coronavirus will also be felt via declining tourism receipts (in 2019, tourism accounted for about 11 per cent of GDP). The Mongolian government’s ability to provide significant stimulus to the economy is hampered by high debt levels (public and external debt reached 73 per cent and 220 per cent of GDP, respectively, in 2019). Overall, Mongolia’s GDP is expected to contract by 1.0 per cent in 2020. The economy is forecast to return to growth (6.0 per cent) in 2021 on the back of a strong recovery in China’s demand as well as domestic private consumption and investment.
Share this page: