Mongolia's economic system is a mixed economy joining a private sector with a public sector. What type of economic system does Mongolia have? It depends heavily on mining, especially coal, copper, and gold, with smaller roles for agriculture and tourism. The 2026 Index of Economic Freedom scores it 62.6, ranking it 69th globally, while Freedom House rates it 84/100, Free.
What is the economic system of Mongolia? The economy of Mongolia is based on a mixed economy. The country’s economic system combines elements of a market economy and a planned economy.
Mongolia’s economy is heavily dependent on mining, particularly coal, copper, and gold. Agriculture and tourism also play a role but are less significant.
No country is purely capitalist or purely communist.
What do the freedom indexes tell about the economic system of Mongolia?
For instance, according to the 2026 Index of Economic Freedom, which measures the ability of every human to control his own labor and property, Mongolia is ranked 69th globally and 13th in Asia-Pacific, with a score of 62.6, indicating that the country has a moderately free economy.
In a similar way, the Freedom House Freedom in the World 2026 report evaluates the state of political rights and civil liberties globally. Mongolia gets a score of 84/100, which qualifies it as Free.
Mongolia is a country where the government does not control what people do for political reasons, and people have the freedom to choose (what, how much, and how to produce, whether to buy or not, selling price, etc.)
The Link Between Public Sector Employment and the Economic System of Mongolia
An indicator of the extent to which the State is involved in the economy is the number of public sector employees. In Mongolia, according to ILOSTAT, the number of public sector employees as a percentage of the total workforce is 24.4% (2021).
In the country’s mixed economy, the number of public sector employees as a percentage of the total workforce varies based on the specific policies and practices adopted by the State. Some economic activities are left to the private sector while others are under government control. The bigger the public sector the closer is the economy to being a command economy.
The historical factors that have influenced the economic system of Mongolia
Mongolia’s mixed economy system is the result of market-oriented reforms, state-owned enterprises, and foreign investment. These reforms have allowed for increased economic growth and development, while also providing a safety net for the most vulnerable members of society.
The reforms have also allowed for increased access to capital, improved infrastructure, and increased access to education and healthcare.
Sources
- List of countries by the public sector size
- ILOSTAT — Mongolia
- 2026 Index of Economic Freedom — Mongolia
- Freedom in the World 2026 — Mongolia
Last updated: June 20, 2026
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