Mongolia also has extensive mineral deposits: copper, coal, molybdenum, tin, tungsten, and gold account for a large part of industrial production.

Economic growth picked up in 1997–99 after stalling in 1996 due to a series of natural disasters and increases in world prices of copper and cashmere.

Recently, the Mongolian economy has grown at a fast pace due to an increase in mining and Mongolia attained a GDP growth rate of 11.7% in 2013.

Prospects for development outside the traditional reliance on nomadic, livestock-based agriculture are constrained by Mongolia's landlocked location and lack of basic infrastructure.

[20] Mongolia's reliance on trade with China meant that the worldwide financial crisis hit hard,[21] severely stunting the growth of its economy.

With the sharp decrease in metal prices, especially copper (down 65% from July 2008-February 2009),[21] exports of its raw materials withered and by 2009 the stock market MSE Top-20 registered an all-time low since its dramatic spike in mid-2007.

[22] Just as the economy started to recover, Mongolia was hit by a Zud over the winter period of 2009–2010, causing many livestock to perish and thus severely affecting cashmere production which accounts for a further 7% of the country's export revenues.

[21] According to the World Bank and International Monetary Fund estimates, real GDP growth reduced from 8% to 2.7% in 2009, and exports shrunk 26% from $2.5Bn to $1.9Bn before a promisingly steady increase up until 2008.

Having identified and learnt from its previous economic instabilities, legislative reform and a tightened fiscal policy promises to guide the country onwards and upwards.

[27] A significant commodity export boom is expected starting from 2023 with new coal rail networks Error in Webarchive template: Empty url.

to China coming online and increased copper production from Rio Tinto’s underground mine Oyu Tolgoi in southern Mongolia.

Over-reliance on mining, rising debt, inflation, and potential fuel supply disruptions from Russia pose risks to the country's economic stability despite government efforts in infrastructure and social programs.

[30] With the recent developments in the mining industry and foreign interest increasing at an astonishing rate, it is claimed that the 'Wolf Economy' looks ready to pounce.

The burning of soft coal coupled with thousands[citation needed][37] of factories in Ulaanbaatar and a sharp increase in individual motorization[38] has resulted in severe air pollution.