In December 2021, the Government of Mongolia published and passed its New Recovery Policy, the first part of the country’s Vision 2050 programme that aims to diversify its economy, boost industry and set the democracy on the way to long-term development. The policy aims to address key economic constraints across six pillars: border ports, energy, industrialisation, urban and rural development, green development, and state efficiency.

In April 2022, at the Mongolian Economic Forum, Prime Minister Luvsannamsrain Oyun-Erdene invited local businesses, foreign partners and international organisations to cooperate on a $49 billion investment goal, which aims to double Mongolia’s gross domestic product (GDP) by 2030. The package combines both structural policy changes – such as partial privatisation of some state-owned enterprises – and infrastructure initiatives, including the approval for a light rail transit system in Ulaanbaatar, the capital.

An upper middle-income country, Mongolia is one of the most commodity-dependent countries in the world. Acknowledging this during the dialogue, Minister Chinbat said: “Historically, Mongolia’s economy has been dependent on commodities such as coal and copper. However, the New Recovery Policy aims to kickstart an economic revolution that is fit for the 21st century.”

Government of Mongolia figures show that, in the past 20 years, the country’s per capita GDP has risen by almost 400% and life expectancy has jumped from 62.72 years to 70.33 years. Highlighting these statistics, Minister Chinbat said: “Mongolia is in the fast lane to becoming a leading Asian country within 30 years – and this is what is driving the New Recovery Policy. The long-term vision has key goals to increase GDP, the welfare of its citizens and its exports, whilst transforming the country into an industrialised Central Asian economy”.

Dr Rathin Roy, ODI Managing Director, said: “We had a fruitful dialogue about Mongolia's plans to move the country forward in the context of challenges facing the country. Minister Chinbat explained how the Government of Mongolia hopes to move the country forward with the New Recovery Policy, diversifying its economy away from commodity dependence and overcoming issues around connectivity by improving transport and logistics infrastructure. We are very much looking forward to continuing this open and constructive conversation in the future to help Mongolia unlock its sustainable growth potential.”

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