Mongolia has one of the fastest growing economies of the world. However much of this growth has been due to the mining sector, upon which there is a heavy reliance (80% of exports). This narrow base raises concerns as financial prosperity is largely at the mercy of global price fluctuations and foreign direct investment.
Whilst still high, the estimated 27% of people living below the poverty line is a rapid improvement since 39% just five years ago. Rapid privatisation since the turn of the century has forced many to become unemployed due the collapse of industry in rural areas. Inflation is high and governance is weak.
