Schiff Sovereign's Take on Mongolia
Mongolia has so much potential.
Boasting vast mineral resources, in the early 2000s, the country experienced a flood of investment money that went into developing enormous natural resource-oriented projects.
From 2009 until 2012, Mongolia held the title of the “world’s fastest growing economy”.
Some very smart people we know went to Mongolia at the time to strike it big.
Projections showed that by 2030 or so, Mongolia was to become one of the wealthiest countries in the world per capita.
But… Mongolia never misses an opportunity to miss an opportunity.
The mongolian government is corrupt and bureaucratic.
The heavy regulations and plain greed of officials stalled most of the projects and chased away investors. Everyone we knew left the country.
Public and private debt skyrocketed (along with inflation), and jobs have been disappearing.
Since 2012, Mongolia’s economy has been largely stagnating. And the tugrik – its national currency – has been continuously losing value versus the US dollar.
It is possible that they will eventually pull the country out of the swamp they put themselves in, and will continue the exhilarating ascent they knew before.
But we aren’t holding our breaths just yet…
Boasting vast mineral resources, in the early 2000s, the country experienced a flood of investment money that went into developing enormous natural resource-oriented projects.
From 2009 until 2012, Mongolia held the title of the “world’s fastest growing economy”.
Some very smart people we know went to Mongolia at the time to strike it big.
Projections showed that by 2030 or so, Mongolia was to become one of the wealthiest countries in the world per capita.
But… Mongolia never misses an opportunity to miss an opportunity.
The mongolian government is corrupt and bureaucratic.
The heavy regulations and plain greed of officials stalled most of the projects and chased away investors. Everyone we knew left the country.
Public and private debt skyrocketed (along with inflation), and jobs have been disappearing.
Since 2012, Mongolia’s economy has been largely stagnating. And the tugrik – its national currency – has been continuously losing value versus the US dollar.
It is possible that they will eventually pull the country out of the swamp they put themselves in, and will continue the exhilarating ascent they knew before.
But we aren’t holding our breaths just yet…
