Poverty in Mongolia

A ger district in Ulaanbaatar

Poverty in Mongolia has declined considerably during the country's economic and social transformation, although it remains an important development challenge. Over the three decades following Mongolia's transition to democracy and a market economy, the country significantly reduced poverty and tripled its gross domestic product per capita. Mongolia became an upper-middle-income economy in 2024.

In 2022, 27.1% of the population, or approximately 900,000 people, lived below the national poverty line. Mongolia has developed an extensive social-protection system, while continuing efforts to improve employment opportunities, rural resilience, housing and access to public services.

Poverty reduction and measurement

Poverty in Mongolia is officially measured using household-consumption data collected through the Household Socio-Economic Survey. The National Statistics Office of Mongolia and the World Bank introduced an updated methodology and rebased the national poverty line using the results of the 2022 survey.

The national poverty line was set at 418,090 Mongolian tögrög per adult equivalent per month in 2022. The national poverty rate was estimated at 27.1%, while inequality, as measured by the Gini coefficient, was 31.4.

Under the World Bank's international poverty line for upper-middle-income economies—$8.30 per person per day in 2021 purchasing power parity terms—24.4% of Mongolia's population was estimated to be living in poverty in 2022.

Because the 2022 assessment used an updated consumption methodology and a rebased poverty line, its results are not directly comparable with figures calculated using the previous methodology.

Economic development

Mongolia's economic growth, particularly the expansion of mining and mineral exports, has increased national income and supported improvements in living standards. Economic recovery after the COVID-19 pandemic contributed to the country's transition to upper-middle-income status in 2024.

However, the benefits of growth have not been distributed equally. Poverty remains more common among households with limited access to stable employment, education, infrastructure and public services. Mongolia's dependence on mineral exports also exposes household incomes and government finances to changes in international commodity prices.

Continued poverty reduction is therefore linked to the diversification of the economy, the creation of productive employment and investment in education, healthcare, housing and infrastructure.

Social protection

Mongolia operates a broad system of cash transfers and social-assistance programmes. These include pensions, disability support, food assistance and the Child Money Programme, which provides monthly payments for children.

A 2025 World Bank assessment found that Mongolia's fiscal and social-transfer system substantially reduced poverty and inequality. Direct cash transfers were estimated to reduce the national poverty rate by 14.1 percentage points before the effects of taxation and other government spending were considered. The Child Money Programme accounted for more than half of the poverty-reduction effect of direct transfers.

Mongolia's social-protection system also demonstrated an ability to expand assistance rapidly during the COVID-19 pandemic. Further reforms have focused on making assistance more responsive to economic disruptions and extreme weather events.

Rural livelihoods and resilience

Livestock herding remains an important source of income and food for many rural households. Herders are vulnerable to drought and severe winters known as zuds, during which livestock may be unable to reach pasture. Major livestock losses can reduce household income and increase the risk of poverty.

The government, local communities and international organisations provide emergency assistance, animal feed, veterinary services and financial support during severe weather events. Mongolia is also developing adaptive social-protection measures intended to provide faster assistance to households affected by climate and economic shocks.

Following the severe 2023–2024 zud, the government supported measures including livestock destocking and preparations for livestock-restocking programmes intended to reduce the long-term effects on herder households.

Urban development

Migration from rural areas has contributed to the growth of Ulaanbaatar and its surrounding ger districts. These districts have enabled many former rural residents to establish homes near employment, education and healthcare opportunities.

Their rapid expansion has also created challenges related to heating, sanitation, roads, housing and air pollution. Government and development programmes have sought to improve infrastructure, public services, energy efficiency and the resilience of housing in ger districts.

Urban investment and improved connections between ger districts and the wider city are considered important for reducing disparities and expanding economic opportunities.

Outlook

Mongolia has made substantial progress in raising incomes and reducing poverty, but a considerable share of the population remains economically vulnerable. Future progress is expected to depend on maintaining stable and inclusive economic growth, improving the targeting and effectiveness of social assistance, expanding opportunities outside the mining sector and strengthening the resilience of rural and urban households.

See also

• Economy of Mongolia
• Ger district
• Social protection
• Zud

External links

• Mongolia Poverty Update 2022 — World Bank and National Statistics Office of Mongolia
• Mongolia poverty and inequality data — World Bank
• National Statistics Office of Mongolia