ULAN BATOR, May 25 (Xinhua) -- Foreign direct investment (FDI) into Mongolia surged 10.8 percent year on year to 671.6 million U.S. dollars in the first quarter of this year, local media reported on Wednesday.
Mining was the primary sector attracting FDI in the above-mentioned period, the Bank of Mongolia said in a statement.
The central bank said the government is working to increase the issuance of exploration licenses to attract more foreign investors because the exploration phase requires large-scale investment.
Mongolia's gross domestic product grew at a double-digit annual rate from 2011 to 2013 as foreign investors rushed in to take advantage of its vast untapped mineral deposits.
Mongolia is rich in natural resources, and FDI in the mining sector has been one of the main drivers of the country's economic growth.
However, FDI inflows to the Asian country have declined significantly in recent years due to several factors such as political instability and the COVID-19 pandemic. ■