Foreign Trade Turnover Reaches USD 2.6 Billion www.montsame.mn

In January 2025, Mongolia traded with 105 countries, and total foreign trade turnover reached USD 2.6 billion.

Of this amount, exports totaled USD 1.7 billion and imports USD 843.0 million, resulting in a trade surplus of USD 906.5 million, the National Statistics Office of Mongolia reported.

Total trade turnover increased by 30.7 percent, or USD 608.9 million, compared to the same period last year. Exports rose by 71.6 percent, or USD 730.2 million, while the trade surplus increased 16.5 times, or by USD 851.5 million. Imports, however, declined by 12.6 percent, or USD 121.3 million.

The growth in exports was mainly driven by increases in copper ore and concentrates by USD 462.3 million, coal by USD 167.6 million, unprocessed or semi-processed gold by USD 95.5 million, and canned meat products by USD 8.3 million. Meanwhile, exports of fluorspar ore and concentrates decreased by USD 15 million, zinc ore and concentrates by USD 6 million, crude oil by USD 5.6 million, and molybdenum ore and concentrates by USD 2.5 million.

The decline in imports compared to the same period last year was largely due to decreases in passenger cars by USD 73.1 million, trucks by USD 36.1 million, vehicle spare parts and components by USD 17.6 million, diesel fuel by USD 13 million, and bulldozers and excavators by USD 7.5 million. Conversely, imports of gasoline increased by USD 26.8 million, nitrogen fertilizers by USD 5.8 million, and packaged medicines by USD 3.5 million.

Furthermore, compared to the previous month, exports decreased by 11 percent, or USD 215.2 million, while imports declined by 23.8 percent, or USD 263.9 million. Mineral products, precious stones, metal jewelry, and base metals accounted for 96.7 percent of total exports. On the import side, mineral products, machinery and mechanical equipment, electrical goods and transport vehicles and their parts, as well as base metals and articles thereof, comprised 72 percent of total imports.

Mongolia Revokes Permits of Six Foreign NGOs www.montsame.mn

The Immigration Agency of Mongolia is conducting oversight of the activities of branches and representative offices of international and foreign non-governmental organizations operating in the country.

Within this framework, the Agency has revoked the permits of six organizations to operate in Mongolia in accordance with the Regulation on Granting, Extending, Revoking Permits, and Supervising the Activities of Branches and Representative Offices of International and Foreign Non-Governmental Organizations in Mongolia.

Specifically, the permits of Republic of Korea-based Raphael International, National Institute for Environmental Research/Monitoring and Global Care, the Czech Republic–based Caritas Czech Republic, the United States–based La Mission De Joie, and Russia-based Silk Way Rally have been revoked.

As of today, a total of 70 branches and representative offices of international and foreign non-governmental organizations are operating in Mongolia.

Mining drives Mongolia’s economy as reform momentum builds www.eastasiaforum.org

Mongolia’s economic outlook signals continued steady growth and structural adjustment amid intensifying political transformation in 2026. GDP is expected to rise by 5.6 per cent — a gradual deceleration compared to 2025 — but still reflecting generally robust momentum. Growth in 2025 was predominantly supply‑driven. The mining sector has been a central driver — a trend that may prove unsustainable amid shifting external conditions.

Mongolia’s non-mining economy grew unevenly by 5.3 per cent. Agriculture was the standout contributor, surging by 33.8 per cent due to favourable conditions following the severe 2023–24 winters — which lifted herd numbers and pastoral productivity. Agriculture’s gains were primarily pastoral rather than being driven by crop output.

Construction expanded by more than 15 per cent on the back of public investment and housing development. Manufacturing grew by 8 per cent as food processing and wool- and cashmere-based industries increased capacity utilisation. The energy sector also grew moderately, despite persistent electricity shortages and ageing infrastructure.

But services faced significant strain in 2025 as reduced coal export revenues led to employment declines of 6.6 per cent in the trade sector and 3.1 per cent in the transport sector. Both sectors are expected to recover gradually from 2026 onwards as household consumption strengthens and labour market conditions stabilise.

On the demand side, consumption grew by 9 per cent, driven by rising wages and strong credit growth. This helped offset a 5.8 per cent contraction in investment in the first three quarters of 2025. The shift toward supply-driven growth marks a notable shift toward a growth model powered by production capacity and external commodity conditions.

Mining will remain Mongolia’s core growth engine in 2026. Relatively strong global prices, alongside stable output from the Oyu Tolgoi copper and gold mine, will underpin sectoral performance, with coal continuing as the key driver. Non-mining growth is likely to diversify — agricultural expansion will moderate due to its high base. Growth in construction, manufacturing and services is likely to accelerate.

Inflation remained elevated at 7.5 per cent in December 2025, above the Bank of Mongolia’s target range. Food prices rose 11.3 per cent, while non-food inflation eased to 6.1 per cent. Poor harvests, weak seasonal declines in meat prices, rising wages and fuel supply risks all contributed to persistent inflationary pressures.

Regulated price hikes — especially sharp electricity tariff increases from late 2024 and heating tariff adjustments — added further cost‑push pressure. Though the Bank of Mongolia raised its policy rate to 12 per cent, inflation may climb again in early 2026 due to public‑sector wage hikes before easing toward 6.1 per cent in 2027. Food-driven inflation will continue to strain households.

Foreign trade totalled over US$27 billion, with a US$4.4 billion surplus as exports reached US$15.8 billion and imports US$11.3 billion. Compared with 2024, exports dipped by 0.1 per cent and imports declined by 2.6 per cent. Export composition shifted strongly — copper ore exports surged 76 per cent and gold exports rose 38 per cent on strong global prices, while coal exports dropped 34.6 per cent amid weaker demand and falling prices. Though Mongolia benefited from high metal prices, its heavy reliance on coal continues to expose it to fluctuations in Chinese demand and global commodity cycles.

Fiscal performance deteriorated in 2025, with the structural budget balance posting a MNT 1.2 trillion (US$796 billion) deficit — contemporaneously estimated at 1.5 per cent of GDP. Revenue growth slowed to 1.3 per cent, while spending increased by 2.3 per cent — led by current transfers, goods and services and capital outlays. Despite underperforming on revenue, Mongolia’s debt remained relatively low at an estimated 39.7 per cent of GDP, while foreign exchange reserves reached over US$7 billion — a historic high — helping bolster macroeconomic stability.

These economic changes took place within a highly turbulent political landscape. A three-party coalition government collapsed in June 2025 after a no-confidence vote triggered by mass protests in Ulaanbaatar over corruption, inequality and alleged government waste. Factional tensions within the ruling Mongolian People’s Party have persisted despite the formation of a replacement governing coalition. The opposition Democratic Party also underwent major renewal, electing reformist Odongiin Tsogtgerel as chairman ahead of the 2028 elections.

In September 2025, the new government launched the ‘New Confidence – Bold Reform’ program within the 2026–2030 Five-Year Development Plan. The reforms target ten major domains. These include government efficiency, taxation, state-owned enterprises, public administration, rural development and green energy. Austerity measures were also introduced to close a potential MNT 3.3 trillion (US$6.7 billion) budget gap. The government has further pursued downsizing of the civil service and restructuring of state-owned enterprises. Long-term feasibility will be hampered by scale and sensitivity despite early macroeconomic stabilisation. The agenda will face pressure from public expectations, entrenched bureaucratic interests and shifting political alignments.

Mongolia’s 2026 economic trajectory will hinge heavily on the external environment, particularly global commodity markets and Chinese demand. Domestically, political consolidation — marked by an increasingly assertive presidency and reduced intra-party fragmentation — will be critical to shaping policy implementation. The government’s ability to manage internal tensions, sustain reform momentum and mitigate external vulnerabilities will determine whether Mongolia can maintain stability during this pivotal phase of economic and institutional transformation.

Narantuya Chuluunbat is Professor at the Economics Department of the National University of Mongolia.

P.Naranbayar announces plan to draft law to restrict children’s use of social networks www.gogo.mn

P.Naranbayar, Minister of Education, posted on his official website that the Ministry of Education will prepare a practicable law to restrict children’s use of social networks, citing growing evidence of harm to young users.

The Minister pointed to legal precedents in countries such as Australia, France, the Republic of Korea and Spain, where under-16 access limits or related measures have been introduced. He said Mongolia will seek broad participation from parents, educators, platform operators and child-welfare experts to design a law that can be implemented in practice.

“Eagle Festival-2026” to be held on March 7-8 www.gogo.mn

The 20th “Eagle Festival” will take place on March 7–8, 2026 at the Chinggis Khaanii Khuree tourist complex.

The festival, dedicated to preserving and promoting Mongolia’s traditional eagle hunting heritage, aims to pass on the customs and unique culture of nomadic communities to younger generations. This year’s event is notable for expanding into a World Championship format for the first time.

To facilitate attendance, a free shuttle bus service will operate between the parking area in front of Sukhbaatar Square and the Chinggis Khaanii Khuree tourist complex for citizens and tourists.

Beate Dastel: UNICEF will continue the implementation of successful projects and programs in Mongolia www.open.kg

On February 23, Beate Dastel officially took office, handing over her credentials to the Secretary of State of the Ministry of Foreign Affairs, Mönkhtushig Lkhanaajav.

Mönkhtushig noted the significant and lasting contribution of UNICEF to achieving Mongolia's social and economic goals, especially in the area of child rights protection and their development. He expressed satisfaction with the fruitful cooperation aimed at improving maternal and child health, expanding educational opportunities, strengthening social protection, and safeguarding the rights of vulnerable groups.

Beate Dastel confirmed UNICEF's readiness to continue implementing successful projects and programs in Mongolia and emphasized the intention to strengthen cooperation to ensure the well-being of children in the country.

Beate Dastel is an Austrian citizen with experience in international development and strategic planning. Prior to her appointment in Mongolia, she served as the Permanent Representative in Djibouti and was also the Deputy Permanent Representative in Laos and Bhutan, as reported by the Ministry of Foreign Affairs.

Saxaul Tree Cultivated in Winter Greenhouse for First Time in Mongolia www.montsame.mn

The Agro-Ecology Center and Tree Nursery of Military Unit No. 336 under the Mongolian Armed Forces has successfully cultivated seedlings of the saxaul tree in a winter greenhouse for the first time in Mongolia. The team collected saxaul tree seeds in November 2025 and conducted a pilot propagation program in a winter greenhouse during the first two months of 2026.

The saxaul tree (scientifically known as Haloxylon ammodendron) grows exclusively in the Gobi regions of Mongolia and Central Asia. It is a long-lived species, capable of surviving for hundreds of years, with an extensive and deep root system adapted to arid conditions. The species constitutes a significant portion of Mongolia’s forest resources and serves as a dominant tree in the Gobi zone.

Ecologically, the saxaul plays a crucial role in maintaining environmental balance in desert areas. It helps combat desertification, stabilizes shifting sands, and prevents soil erosion. In addition, it provides fodder for livestock and wildlife and supports the broader ecosystem of the Gobi region.

Mongolia's Proposed Senior Unsecured Notes Assigned 'BB-' Long-Term Foreign Currency Rating www.spglobal.com

S&P Global Ratings today assigned its 'BB-' long-term foreign currency issue rating to the benchmark-size U.S. dollar-denominated senior unsecured notes that Mongolia proposes to issue.

The note issuance is part of the Mongolian government's liability management exercise. Concurrently, Mongolia (BB-/Stable/B) has announced a voluntary tender offer on its U.S. dollar-denominated bonds due 2026, 2028, and 2029. The government intends to fund the tender offer using proceeds from the note issuance.

The notes represent direct, general, unconditional, unsecured, and unsubordinated obligations of the sovereign and rank equally with the sovereign's other unsecured and unsubordinated debt obligations.

The rating on the notes is subject to our review of the final issuance documentation.

Moody’s assigns B1 rating to Mongolia bonds on refinancing plan www.in.investing.com

Moody’s Ratings assigned a B1 rating today to proposed senior unsecured, U.S. dollar denominated bonds to be issued by the Government of Mongolia. The notes will rank pari passu with all of Mongolia’s existing and future senior unsecured obligations. The proceeds will be used to fund a tender offer to repurchase a portion of its bonds and for refinancing upcoming maturities.

The rating of the proposed notes mirrors Mongolia’s long term issuer rating of B1 with a stable outlook. Mongolia’s credit profile is supported by solid economic growth prospects underpinned by strong demand for key mineral exports, particularly copper, alongside an emerging track record of effective debt and fiscal management. Structural demand for copper related to electrification and digital infrastructure supports medium term growth, while ongoing increases in output will further strengthen export performance.

The government debt burden declined to around 43% of GDP at year end 2025 from about 74% of GDP in 2020, supported by strong nominal growth and prudent debt management. Moody’s expects fiscal deficits to widen modestly over the next few years, reaching about 4.3% of GDP in 2026, as revenue growth moderates and spending pressures persist. The firm forecasts a broadly stable debt ratio of about 44% of GDP in 2026.

Credit strengths are balanced by Mongolia’s continued reliance on commodities, which exposes fiscal and external metrics to price fluctuations, particularly for coal. While coal remains a significant export, its price sensitivity to developments in China’s property and steel sectors constrains revenue visibility. External liquidity risks remain elevated given sizeable market debt maturities in the second half of the decade, though these risks are mitigated by continued access to international capital markets and the government’s track record of refinancing upcoming obligations.

Mongolia’s ESG credit impact score is CIS-4, driven by high exposure to environmental and governance risks. The sovereign’s exposure to environmental risks reflects an economy that is highly dependent on the production and export of hydrocarbons, particularly coal, which leaves the sovereign susceptible to carbon transition risk. Exposure to governance risks reflects still weak executive institutions and policy effectiveness, despite recent progress on structural reforms.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

The 2250-km, more diverse alternative to the Trans-Siberian railway www.brisbanetimes.com.au

It is perhaps no surprise that someone has asked for it to rain vodka atop the Mountain of Wishes – the real shock is that they get it.

I’m standing next to a stupa, under a clear blue sky, looking across the seemingly endless Gobi Desert in southern Mongolia when droplets start landing on my head. For a second, it really does seem like a Buddhist miracle, then I notice a man on the other side of the stupa, muttering prayers and spraying a holy statue with cheap grog as a sort of offering.

Nearby flags are fluttered to tatters by a relentless steppe wind. Just away from the peak, three men throw coins and more vodka into the void, screaming some kind of blessing as they do so.

Women are not allowed to ascend to the sacred summit, barring them from this strange boys’ club. Even deities can be misogynists, I suppose, but several of the women in my small Intrepid Travel group are glad to have avoided the extra climb and the curious behaviour at the zenith.

Our group arrived in Mongolia on board a chuntering train. Like the cheap vodka, the Trans-Mongolian is a relic from the Soviet Union’s 68-year rule and bisects the country from the Chinese border town of Erlian to the Mongolian capital, Ulaanbaatar.

There are more than 2250 kilometres of track, but no significant routes beyond this mighty trunkline. Intrepid’s itinerary, including the visit to the Mountain of Wishes, is supplemented with bus tours and designed to help us experience more of the country than we’d see from the carriages.

In an ordinary year, anyone looking to sample this old Soviet mode of transport would likely have taken the Trans-Siberian Express, but with the ongoing Russia-Ukraine war, few are willing or able to travel to Russia. The Mongolian alternative is much shorter, but Intrepid’s itinerary ensures it is also a lot more diverse. So instead of being married to the tracks, we find ourselves in the windy wilderness.

A few kilometres from the holy mountain, we meet the nomadic Yorolt family who tend a 170-strong herd of Bactrian camels. Unlike the feral imports in Australia, these two-humped beasts are perfectly at home in the Gobi Desert.

The Yorolts are a genuine farming family and real nomads, but they allow tourists to briefly experience their way of life. We have lunch in their yurt, or ger in Mongolian, drink camel milk and are invited on a camel ride. I look into the camels’ eyes, past the lavish Disney princess eyelashes, into the mind of a moron, and politely decline.

Our visit really does feel like a step through a time portal – at least initially. As the camels are gathered to be milked, one or two spook and flee across the sand, looking for all the world like pantomime horses containing three or more people, as their ungainly sprint gathers pace.

To herd them, one of the family uses horsepower, though not on horseback. Emerging from behind a dune, a sapphire blue Toyota Prius speeds out in pursuit of the runaway. Efficient as it is, I find it difficult to imagine the region’s legendary hardman Genghis Khan approving of anyone driving a hybrid across his land.

From the city of Sainshand, our brilliant tour guide, Bata Erdenekhuu, gets us all back on the Trans-Mongolian for an overnight trip to Ulaanbaatar. While we board, the peach-and-rhubarb colours of sunset kiss the side of the engine and for a moment, it seems like the most romantic vehicle in the world. That impression does not last, but what the train lacks in comfort it makes up for in authenticity.

It doesn’t appear to have had many upgrades since the Soviets completed it in 1956, with pink faux-velvet curtains and an ugly satin pillow a shade of green that reminds me of a heavy cold. In our cabins, however, it feels like we are on a school trip, especially when a couple of Canadian retirees produce a bottle of local vodka.

While Bata lives in the capital, she has relatives who still live nomadic or semi-nomadic lives. She feels those traditions herself. When I ask for an example of how that manifests her answer is almost poetic: “A horse has a soul – you can work with that. The bike is just a bike, the car just a car, and so I don’t get on well with them.”

We wake the next morning a little bleary-eyed in Ulaanbaatar and are taken to a hotel for a shower and breakfast before getting back on the road. While we’ll eventually have our time in the country’s biggest city, the great Mongolian grasslands is to be experienced.

There are also, despite the Soviet Union’s efforts to erase religion from this country, more Buddhist sites to visit. This includes the Aryabal Temple in the Gorkhi-Terelj National Park, about an hour north-east from the city. The first little fires of autumn begin to colour the leaves of trees that surround the holy place. Birds call in the cool, clean air. It feels calm, as places of worship so often do.

It is a little jarring, then, to start reading the little prayers and philosophies printed on boards next to the stairs. They appear in both Cyrillic and English, and I have no idea how accurate the translation is, only that the messages are so miserable and misanthropic as to be hilarious. “May you thoroughly realise that this world is like a ravine on fire,” reads one. Another: “One suffering replaces another type of suffering. We mistake the in-between time of this replacement to be happiness.”

The next couple of days pass in the countryside, far from the smoggy city. Our group travels west, slipping through Ulaanbaatar as fast as the traffic allows us and out the other side. We spend two nights in gers under a cold starry sky. Simply being in the immense stillness of the steppe feels almost transcendent.

We meet nomad couple Landa Yadamsuren and Diwa Gochoo. This is the first year they have worked in tourism and assure us that people are much easier to work with than livestock, and that when winter passes, they’ll come back and do it all again.

Their place seems idyllic, a flat piece of grassland sheltered from the wind and far enough from the road to feel genuinely remote. I assume they’ll come back here in spring.

“Well that totally depends on the grazing, how good it is for the animals,” Diwa says. “The animals are the most important thing. They always are.”

BY Jamie Lafferty
Jamie Lafferty is a writer and photographer based in Glasgow, Scotland. He has been to over 100 countries and all seven continents at least four times. He absolutely will steal your hotel's shampoo when you aren't looking.