Monday, August 2, 2010

Service Sector, Mongolia

After the transition shocks of of the early 1990s, Mongolian Domestic production has picked up again. According to the CIA World Factbook, in 2008, the service sector of Mongolia accounted for 49% of the GDP, with 61 % of the work force of 1.06 million involved.
Foreign investment from other countries (including China, Japan, South Korea, Germany and Russia) has helped to add more paved roads. The most important is a 1000 km north-south road leading from the Russian border at Sukhbaatar to the Chinese border at Zamyn Uud. There are several air transport companies in Mongolia, including MIAT, Aero Mongolia, and Eznis Airways. Petroleum products are mainly (80%)    
imported from Russia, which makes Mongolia vulnerable to supply side shocks. This is one strong example of the Influence of Mongolia's neeighbors on its economy.