EN MN

Current macro-economic situation

As of the 2016, the nominal GDP was MNT 17,258.9 billion, which is a decrease of 1.6 percent compared to corresponding quarter of the previous year. Although the added value of the agriculture sector has increased by 2.8 percent8 the overall decrease in GDP was affected by decreases of value added in the industrial and construction sectors by 2.9 percent, and service sector by 1.7 percent.

The growth of real GDP for 2016 is projected at 1.3 percent, which is mainly driven by projected growths in the agriculture sector by 10.5 percent, electricity and heating sector by 3.0 percent, construction sector by 0.5 percent, wholesale and retail sector by 2.0 percent, transportation and storage activity sector by 8.9 percent.

 In addition, the Oyu Tolgoi deposit concentrate is expected to increase by 12.5 percent in 2016, however, the expected decrease of pure copper and gold contents in copper concentrate will result in 6.9 percent decline in the mining sector in 2016. 

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Electricity

Electricity is estimated to reach 80 percent of the population. Of the electricity consumed, 80 percent originates from coal, four percent from diesel, three percent from renewables, mainly hydropower, and 13 percent imported from the Russian Federation.

A fifth power plant is under consideration for the Ulaanbaatar area, although a concession agreement has yet to be concluded.

Prices

 

Unit

Value

Year

Comment

Mining (day)

USD

0.07

2016

6 a.m to 5 p.m

Mining (evening)

USD

0.13

2016

5 p.m to 10 p.m

Mining (night)

USD

0.03

2016

10 p.m to 6 a.m

Industry (day)

USD

0.06

2016

6 a.m to 5 p.m

Industry (evening)

USD

0.10

2016

5 p.m to 10 p.m

Industry (night)

USD

0.04

2016

10 p.m to 6 a.m

Water

Water is essentially supplied in urban areas. Water prices are below.

Prices

 

Unit

Value

Year

Comment

Water for wool and leather processing 

USD

0.52

2016

per m3

Water for beverages

USD

0.67

2016

per m3

Water for industry and offices

USD

0.39

2016

per m3

Telecommunications

As of the 2015 the four major Mobile operators - Mobicom, Unitel, Skytel and G-Mobile reported more than 5 million registered users in total.

Most players have worked to expand their coverage of rural areas with 2G service, in order to ensure that the country’s substantial rural population has access to telecoms services. Despite these issues, operators have continued to invest in new technology in Mongolia. Indeed, expanding 3G and 4G (LTE) services is regarding as the most promising means of boosting ARPUs in the coming years. Smart phones and, consequently, data service; have become increasingly popular throughout Mongolia in the past two or three years, with the growth largely focused in urban areas.

While the number of internet users in Mongolia has risen quickly in recent year, many Mongolians have yet buy into segment. The installation of the fibre-optic cable network started in 2002, with 17.000 km of high-speed fibre and transmission facilities covering 279 soums (districts) and 21 aimags (provinces) already deployed. As a result of these efforts, 90% of soums now have access to broadband internet, as well as public and private e-services.

 

Unit

Value

Year

Comment

Mobicom

0.04

USD

2016

Postpaid tariff per minute

Transport costs

Mongolia is a land-locked country. The cost of transporting a container from Tianjin (China) to Ulaanbaatar is below.

Prices

 

Unit

Value

Year

Comment

Freight transport

USD

1.900-2.100

2016

40' container from Tianjin to Ulaanbaatar

Freight transport

USD

1.500-1.700

2016

20' container from Tianjin to Ulaanbaatar

Other costs

For indicative purposes, a basket of goods and services that investors may face are included below.

Prices of goods and services

 

Unit

Value

Year

Comment

Petrol

USD

0.79

2016

1 litre

Diesel

USD

0.82

2016

1 litre

Coca cola

USD

0.85

2016

1.5 litres

Local beer

USD

0.65

2016

0.5 litres

Imported beer

USD

1.40

2016

0.5 litres

Bottled water

USD

0.45

2016

1 litre

Rice

USD

1.50

2016

1 kg

Flour

USD

0.63

2016

1 kg

Whole chicken

USD

3.75

2016

1kg

Minced beef

USD

4.25

2016

1 kg

Mutton

USD

3.45

2016

1kg

Milk

USD

1.04

2016

1 litre

Sugar

USD

0.89

2016

1 kg

Cement

USD

1.85

2016

25 kg