The reform measures undertaken by the Government at the initial stage of the transition has led to the stabilization of the economic situation and recovery of the economy since 1993. The GDP growth rate increased to 2.3 per cent in 1994.

From a decline of 9.5 per cent in 1992, the GDP has remained positive since then. Importantly, the industrial sector (including the mining sector), which consistently declined at a rate of about 6 per cent per annum revived, delivering 20 percent growth in 2002. The change brought up the share of this sector in GDP to 26.6 percent. In the same period, the major economic sector, agriculture, failed to realize its growth potential. The winters and springs of 1999-2002 brought extreme harsh climate changes; droughts and excessive snowfalls led to Dzud, which took a heavy tall on livestock. As a result, agricultural production fell, economic growth slowed and many thousands of herders were hit hard, and left without any sources of income. According to Asian Development Bank report Mongolia`s economy is expected to strengthen as mining and labour-intensive become important sources of economic expansion.

Economic Indicator 2005 

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