Benedicte Gravrand, Opalesque Geneva:
An Opalesque column for macro investors.
Thanks to its extensive mineral wealth, Khan Investment Management , a Singapore-based manager, projects a double-digit annual GDP growth for Mongolia over the next five years. This is in line with expectations from the IMF, the World Bank and the Economist Intelligence Unit.
The rise of Mongolia
Mongolia is a landlocked country in East and Central Asia with a population of around 2.75 million people. It is bordered by Russia to the north and China. Ulan Bator, the capital and largest city, is home to about 45% of the population. Mongolia's political system is a parliamentary republic.
Economic activity in Mongolia used to be based on herding and agriculture, but extensive mineral deposits of copper, coal, molybdenum, tin, tungsten, and gold have since been a driver of industrial production. Mining is 21.8% of GDP and agriculture is 16% of GDP.
GDP, inflation, trade deficit
Its mining sector helped it grow substantially in 2007 and 2008 (9.9% and 8.9%, respectively), but its currency dropped 40% against the U.S. dollar in 2009 due to falls in commodity prices. (The Thomson Reuters/Jeffer......................
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