MONGOLIA`S GDP EXPANDS BY 3.7% IN FIRST 3 QUARTERS

Ulaanbaatar /MONTSAME/. By production approach, Mongolia`s Gross Domestic Product (GDP) totaled MNT 35.2 trillion (over 10.3 billion U.S. dollars) in January- September period, which increased by MNT 5.3 trillion (17.7%) from the same period of the previous year.

GDP at 2015 constant price was MNT 20.3 trillion, which is increased by MNT 730.0 billion (3.7%) compared to the same period of the previous year.

The National Statistics Office reported that GDP at 2015 constant prices decreased by 6.7% in the first nine months of 2020, but increased by 3.7% in the first nine months of 2021 and 2022. In the third quarter of 2022, seasonally adjusted GDP at constant 2015 prices increased by 1.0% compared to the previous quarter.

The increase was mainly attributed to significant growth of the agricultural and mining sectors, Erdene-Ochir Myagmarkhand, a senior expert of the NSO said in a statement. In particular, to a 3.7% increase in GDP at 2015 constant prices in January- September, the agriculture sector contributed 1.6 percentage points, the mining and quarrying sector contributed -2.3 percentage points, the industry and construction sectors contributed 0.3 percentage points, the service sector contributed 2.4 percentage points and net taxes on products contributed 1.7 percentage points.

The value added of the agriculture sector at 2015 constant prices reached MNT 3.4 trillion in the first three quarters of 2022, which is increased by MNT 310.9 billion (10.2%) compared to the same period of the previous year and contributed 1.6 percentage points to GDP growth.

In the same period, the value added of the mining and quarrying sector at 2015 constant prices reached MNT 2.1 trillion, which decreased by MNT 444.9 billion (17.3%) compared to the previous year. This was caused by the decrease in the extraction of coal by 11.9 %, crude oil production by 66.9 %, and metal ores by 12.1%.

The value added of the industrial and construction sector at 2015 constant prices reached MNT 2.3 trillion, which increased by MNT 63.4 billion (2.9%) compared to the same period of the previous year. This increase was mainly due to a 3.7% increase in value added to the construction sector compared to the same period of the previous year.

The value added of the service sector at 2015 constant prices in the first half of 2022 was MNT 9.4 trillion, increased by MNT 474.1 billion (5.3%) compared to the same period of the previous year. This increase was mainly due to an 11.3% increase in the value-added of wholesale and retail trade, and an 8.7% increase in the value-added of the communication and information sector, compared to the same period of the previous year.

In the first nine months of 2022, the shares of final consumption, gross capital formation, and net exports (exports and imports) to GDP were 65.9%, 43.3%, -9.2% (share of export was 61.3%, and the share of import 70.5%, respectively).

Compared to the same period of the previous year, the share of gross capital formation increased by 3.8 percentage points, but the share of final consumption in GDP decreased by -0.2 percentage points, and the share of net exports decreased by -9.2 percentage points.

By expenditure approach, GDP at 2015 constant prices in the first nine months of 2022 was MNT 20.3 trillion and increased by MNT 724.2 billion (3.7 %) compared to the same period last year.

In terms of contributions of components to the 3.7% growth of GDP in the first three-quarters of 2022 final consumption contributed 5.3 percentage points, gross capital formation contributed 9.3 percentage points, and net exports contributed -10.8 percentage points. Within this period, the final consumption at 2015 constant prices was MNT 16.9 trillion and increased by MNT 1.0 trillion (6.5%) compared to the previous year.

The household consumption at 2015 constant prices was MNT 13.6 trillion, which increased by MNT 918.1 (7.2%) billion compared to the same period of the previous year. The contribution of household final consumption to the growth rate of GDP was 4.7 percentage points.