widespread opposition to
privatization. Growth improved from 2002 at 4% to 2003 at 5%, due
largely to high copper prices and new gold production, with the
government claiming a 10.6% growth rate for 2004 that is
unconfirmed. Mongolia's economy continues to be heavily impacted by
its neighbors. For example, Mongolia purchases 80% of its petroleum
products and a substantial amount of electric power from Russia,
leaving it vulnerable to price increases. China is Mongolia's chief
export partner and a main source of the "shadow" or "grey" economy.
The World Bank and other international financial institutions
estimate the grey economy to be at least equal to that of the
official economy. The actual size of this grey - largely cash -
economy is difficult to calculate since the money does not pass
through the hands of tax authorities or the banking sector.
Remittances from Mongolians working abroad both legally and
illegally constitute a sizeable portion. Money laundering is growing
as an accompanying concern. Mongolia settled its $11 billion debt
with Russia at the end of 2003 on very favorable terms. Mongolia,
which joined the World Trade Organization in 1997, seeks to expand
its participation and integration into Asian regional economic and
trade regimes.

GDP (purchasing power parity):
$5.332 billion (2004 est.)

GDP - real growth rate:
10.6% according to official estimate (2004 est.)

GDP - per capita:
purchasing power parity - $1,900 (2004 est.)

GDP - composition by sector:
agriculture: 20.6%
industry: 21.4%
services: 58% (2003 est.)

Labor force:
1.488 million (2003)

Labor force - by occupation:
herding/agriculture 42%, mining 4%, manufacturing 6%, trade 14%,
services 29%, public sector 5%, other 3.7% (2003)

Unemployment rate:
6.7% (2003)

Population below poverty line:
36.1% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 2.1%
highest 10%: 37% (1995)

Distribution of family income - Gini index:
44 (1998)

Inflation rate (consumer prices):
11% (2004 est.)

Budget:
revenues: $582 million
expenditures: $602 million, including capital expenditures of NA
(2004 est.)

Agriculture - products:
wheat, barley, vegetables, forage crops, sheep, goats, cattle,
camels, horses

Industries:
construction and construction materials; mining (coal, copper,
molybdenum, fluorspar, and gold); oi