Mongolia at a glance

Located in the heart of Central Asia, between the People’s Republic of China and Russian Federation. Mongolia houses 3.3 million citizens living sparsely over a territory of 1,566,500 square kilometres, making it the least densely populated country in the world. While historically nomadic, 67.8% of the population resided in urban areas by 2018. The country is home to over 70 million livestock, but rapid growth in numbers has not translated into higher productivity due to underdeveloped animal health systems, pasture degradation, and inadequate fodder and water supply. Crop production remains limited by harsh climatic conditions, short growing seasons, and declining yields of cereals, potatoes, and vegetables. Additionally, weak food value chains and inadequate food safety enforcement hinder agricultural development and exports.

Since transitioning to a market economy in the 1990s, Mongolia has experienced economic volatility, with triple-digit inflation and food shortages initially, followed by stable growth in the 2000s. Although designated an Upper Middle Income Country in 2015, currency depreciation led to its reclassification as a Lower Middle Income Country in 2016. Despite growth, concerns persist over rising inequality, limited employment creation, and stagnant poverty levels. Meanwhile, Mongolia’s vast forests and biodiversity-rich grasslands face degradation from overgrazing, illegal logging, and weak conservation efforts. Over 70% of pastureland has deteriorated, increasing risks for herders and threatening the livestock industry.

Climate change exacerbates these issues, with Mongolia experiencing a 2.14°C temperature rise since 1940. This has led to drier grasslands, reduced biomass, shrinking water sources, and shifting precipitation patterns. Extreme weather events like "Dzud"—severe winter disasters—have increased, causing economic devastation. Desertification affects 70% of the country, driven by both climate change and overgrazing. Urgent action is needed to mitigate environmental damage, improve sustainable land management, and strengthen Mongolia’s agricultural and economic resilience.