The Impact of COVID-19 on Mongolia's Economy: A Comparative Analysis

Abstract

COVID-19 has had a significant impact on the economies of numerous nations around the world. It also had a significant effect on Mongolia's economy. From January 27, 2020, until May 11, 2021, Mongolia implemented a harsh curfew against the Corona virus four times, lasting a total of 11 months and 9 days. In addition to strict curfews, various types of curfews were in place at the time. For most of this long period, the activities of small and medium-sized enterprises providing entertainment and services in some sectors were completely restricted. Furthermore, when China, Mongolia's largest trading partner, closed its borders due to the global shock brought on by the pandemic curfew imposed in 2020–2021, Mongolia's economy essentially came to an end. Generally, the mining sector, specifically the export of copper, coal, and gold, slowed down. As a result of China closing its border, Mongolia's GDP growth has slowed down, and the level of poverty and inflation is at a disadvantage compared to previous years. In this paper, I contrast the economies of pre-Covid and post-Covid Mongolia. The correlation test was used to investigate the connection between some major export items and Mongolia's GDP per capita to prove this. Furthermore, the Granger causality test was used to compare Mongolia’s GDP per capita forecast with Mongolia's actual GDP per capita chart. In addition, a survey of the behavior of Mongolian investors among 103 people living in Mongolia today after the long-term COVID-19 curfew is included in this paper.