FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
MONGOLIAN STOCK EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
GDP real growth accelerated over the 2nd
quarter of 2008, reaching 11.3% over the
last 12 months. The main engines of growth
were services and agriculture, contributing 4.2
and 3.8 percentage points respectively to GDP
growth. Although the direct contribution of
mining to economic growth is small or even
negative, this remains Mongolia’s main foreign
exchange earner, with large export revenues
from high world metals prices and sustained
FDI flowing into the sector over the first half of
the year.
Copper prices fell recently on weak
demand, especially from sagging global
construction activity and higher inventories,
with prices plunging sharply in early October
on concerns about global growth. From
August to early October, the total drop
exceeded 40%.
Wages and salaries are increasing in all parts
of the economy and showed a rapid increase
of 69% in the first semester of 2008 (year-on-
year), and of 119% over the last 2 years.
Public sector wages were increased by 129%
over the same period. The share of wages and
salaries in household incomes has increased
rapidly, from 40% in the 3rd quarter of 2007 to
46% in the 2nd quarter of 2008.
General Government budget
For the preliminary result of 2008, total
revenue and grants of General Government
budget totaled 2156.4 billion togrogs, total
expenditure and net lending 2462.0 billion
togrogs and General Government budget
overall balance was a deficit 305.7 billion
togrogs, which were representing 35.2%,
40.2% and 5.0%of the GDP, respectively.
Current revenue of General Government
amounted to 2136.1 billion togrogs and
current expenditure 1749.5 billion togrogs. The
budget current balance was a surplus 386.6
billion togrogs.
Compared to 2007, tax revenue increased by
25.7% or 386.6 billion togrogs, taxes on
foreign trade increased by 47.2% or 48.4
billion togrogs, excise tax increased by 33.4%
or 44.7 billion togrogs and value added tax
increased by 33.9% or 90.0 billion togrogs,
accordingly.
Money, loan
According to the report of the Bank of
Mongolia, at the end of December of 2008
money supply (broad money or M2) increased
by 4.4% or 99.6 billion togrogs over the
November of 2008, reaching 2341.4 billion
togrogs and decreased by 2.5% or 59.9 billion
togrogs compared to December of 2007.
At the end of November of 2008, the reverse
assets reached to US$ 606.3 million which
equals with the import needs of 8.7 weeks or
2.2 months.
The nominal rate of togrog against US.dollar is
1267.51 togrog at the end of December 2008.
Compared with December of 2007, rate of
togrog weaken by 8.3%.
Consumer price index
In December 2008, the national consumer
prices increased by 0.04% compared with
previous month and by 22.1% from the end of
previous year. CPI increase by 22.1% was
higher 3.6 times than the objective in the Main
Guidelines of Socio-Economic Development of
Mongolia for 2008 which CPI shall be kept at
6.0%. Annual average CPI for 2008 was
28.0%, the highest growth over the last
decade.
External trade
For the preliminary estimates of 2008, total
external trade turnover equaled US$ 6155.1
million. of which exports US$ 2539.3 million
and imports US$ 3615.8 million. Total external
trade balance turned a deficit of US$ 1076.5
million. The deficit is increased by US$ 855.6
million compared with the 2007. External trade
deficit has been influenced by the import
growth of products and materials of fuels
which is 36.3 point higher than export growth.
As compared with the 2007, total external
trade turnover increased by 49.4%, exports by
30.3% and imports by 66.6% respectively.
In the Main Guidelines of Socio- Economic
Development 2008, there have special goals
such as to improve external trade surplus, to
raise net official reserves. But the total external
trade balance deficit was US$ 1076.5 million
and it is increased by US$ 855.6 million or 4.9
times compared with the 2007.*
* National Statistical Office (www.nso.mn)
World Bank Country Report
(http://go.worldbank.org/D8H9DQNLZ0)
Key Information Contacts
Parliament of Mongolia www.parl.gov.mn
State Property Commission www.spc.gov.mn
Ministry of Finance www.mof.pmis.gov.mn
Financial Regulatory Commission www.frc.mn
The Central Bank of Mongolia www.mongolbank.mn
Mongolian Chamber of Commerce & Industry www.mongolchamber.mn
National Statistical Office of Mongolia www.nso.mn
Ministry of Foreign Affairs www.mfa.gov.mn
2007-ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a)
Industry
Mining
Agriculture
Transport & communications
Trade
27.4
2007-COMPONENTS OF GROSS DOMESTIC PRODUCT (%) (a)
Gross capital formation
Private consumption
Government consumption
Gross fixed capital formation
Net exports of goods & services
50
48.9
37.6
40
20.6
35.7
34.9
30
20
15.2
10
9.1
0
-1.7
7.6
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* World Bank reports