Mar. 21 – Mongolia’s internet sector is considered to be one of the most rapidly expanding sectors in the country, according to market research conducted by local Frontier Securities.
The number of internet subscribers in the country increased 10-fold from 2006 to 2009 – from around 10,000 to over 100,000. Estimates grew to 199,000 subscribers by the end of 2010 due in part to falling costs as the market expands.
According to Frontier Securities data, the wholesale price connection has dropped from US$3,250 per 1 Mbps in 2004 to US$80 in 2011. Continue reading
Mar. 16 – Mongolia’s travel and tourism sector directly contributed around US$256.3 million to the country’s gross domestic product in 2011, accounting for almost 4 percent of the total. Furthermore, it is forecast to rise by 7.3 percent in 2012, according to the World Travel and Tourist Council’s (WTTC) recent report titled, “Travel and Tourism: Economic Impact. Mongolia.”
The total contribution of the industry – direct, indirect and induced – is even larger and accounts for US$592.4 million, or 9 percent of Mongolia’s GDP, and is forecasted to rise by 6.4 percent in 2012. By comparison, the global average for direct industry contribution to GDP is 5.12 percent and for overall economic impact – 13.8 percent. Continue reading
Mar. 14 – Japan and Mongolia agreed on Monday to launch talks on a bilateral free trade agreement and to provide Ulaanbaatar with economic aid, officials said.
Japanese Prime Minister Yoshihiko Noda and his Mongolian counterpart Sukhbaatar Batbold, who is on a six-day visit to Japan from Saturday, also agreed that the two countries will boost cooperation in the development of natural resources and infrastructure, according to a joint announcement released after their meeting in Tokyo.
The matter was on the agenda last year as well, but it was stalled when Japan’s prime minister at the time, Naoto Kan, had to deal with the major crisis triggered by the March 2011 natural disasters. Continue reading
Posted in Aviation, Business, Energy, Foreign Trade, Manufacturing, Mining, Politics
Tagged Free Trade Agreement, Mongolia Diplomacy, Mongolia FTA, Mongolia Politics, Mongolia-Japan Relations, Sukhbaatar Batbold, Yoshihiko Noda
Mar. 6 – The European debt crisis may lead to a financial crisis in Mongolia, according to a report released by the World Bank last week.
A global economic slowdown may lead to a sharp drop in mineral prices, which will greatly impact the Mongolian government’s revenue, as it is highly dependent on mineral resources.
“Sharply rising government spending is the root cause of overheating: government spending rose by 56 percent in 2011 and is budgeted to rise by a further 32 percent this year, fueled by sharply rising resource revenues,” the report says. Continue reading