Mongolia’s Economy Rebounds Despite Falling Royalties and Rising Inflation

Mongolia’s economy grew a robust 5.9 percent in the first nine months, exceeding forecasts that anticipated a muted year for mining. The growth, however, reveals a deeper challenge.

Agriculture, not mining, powered the expansion, while a key revenue source declined sharply and inflation persisted.

The surprising momentum stemmed from agriculture, which surged 33.8 percent in value added after last year’s severe winter storm, known as a “zud.” This rebound contributed 3.4 percentage points to overall growth, driven by improved grazing conditions and higher meat and dairy output.

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