Abundance of resources and animal husbandry offer potential
Mongolia is more than four times larger than Germany, but only has a population of 3.0 million people. Mining is very important for the country due to its wealth of natural resources, accounting for 70 % of the industrial sector and producing high growth rates. Approx. 37 % of Gross Domestic Product is composed of the industrial sector, with mining constituting the largest share of it. The whole Mongolian economy is significantly resource-driven. Gold, copper and coal are the major export products of the thinly populated landlocked country, which is characterised by extreme seasonal variation in temperature. Mongolian-German relations are on a very solid footing, with 30,000 Mongolians able to speak German which is approx. 1 % of the total population. This is the highest proportion out of all Asian countries. Since the collapse of the Soviet Union, Germany and especially KfW, is a reliable partner. This applies particularly to the energy sector, which is of vital importance to Mongolia due to the country's harsh climate.