An Analysis Of The Economic Crisis In Mongolia

Mongolia is a landlocked country with sparse population,small economies,backward industries,and abundant natural resources.Since the 1990 s,Mongolia has implemented a major reform from a planned economy to a market economy.With the disintegration of the former industrial division of labor in the former Soviet Union and the major changes in the pattern of foreign trade,the rapid deterioration of the Mongolian economy was plunged into a serious economic crisis.During the economic transition period,the country of Mongolia once fell into a serious economic recession.After the assistance of the countries of the world,with the correct leadership of the central government and the joint efforts of the people,Mongolia gradually emerged from the economic development difficulties and showed a good momentum of development.Since the 21 st century,the economic development of Mongolia has achieved remarkable achievements.In 2007,the economic growth rate was 9.9%.After more than a decade of difficult and tortuous reforms,Mongolia has shaken off the shadow of the transition economy and entered a new phase of rapid development.However,in 2008,due to the impact of the global financial crisis,especially due to the fluctuation of mineral prices in the international market,the economy was severely declining.With the further weakening of the impact of the global financial crisis,the global mining industry has been out of the doldrums,the high price of mineral products in the international market,Mongolia's strategy of “rejuvenating the country” and the gradual success of the Mongolian economy,and Mongolia's rapid economic recovery has entered a “golden age” of rapid growth.In 2011,it created a 11.7% miracle of economic growth and became one of the fastest growing economies in the world.However,the good times did not last long,and there were originally economic drawbacks such as a weak economic foundation,poor financial strength,a single industrial structure,excessive dependence on mineral resources,and a high level of foreign economic dependence.The failure of the Mongolian government's major policies led to continued rising fiscal deficits and huge debt pressure.The Mongolian currency Tugrik devaluated sharply and the risk of sovereign debt default highlighted.At the same time,the international environment has deteriorated and the export of bulk commodities has decreased,leading to a recession in 2014 and another round of economic crisis.The background of the recovery of commodity prices and the effective policy guidance of the Mongolian government and the assistance of the International Monetary Fund and various countries under the Mongolian economic recovery in 2017 have gradually emerged from the economic crisis.