According to the report on the construction industry of Mongolia for 2025, a 9.5% increase in production is expected in real terms, which will contribute to the growth of producer price indices in sectors such as energy, transport, and housing construction — forecasts are valid until 2029. This is reported by MiddleAsianNews.
The construction sector of Mongolia is on the brink of significant changes, which will be supported by state and private investments in energy, transport infrastructure, and housing construction. The increase in foreign direct investment also confirms the growing trust from investors, while major projects and budget expenditures contribute to the development of infrastructure and expansion of opportunities in various sectors.
A report titled "Size, Trends, and Forecasts of the Construction Market in Mongolia by Sectors — Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional, and Residential Market: Analysis until 2029 (Second Half of 2025)" has been added to the ResearchAndMarkets catalog.
By 2025, the construction industry of Mongolia is projected to grow by 9.5% in real terms, made possible by investments from both the public and private sectors in the development of energy, transport infrastructure, and housing construction.
According to the National Statistical Office of Mongolia (NSO), the value added in construction increased by 34.5% year-on-year in the second quarter of 2025, following a decrease of 0.8% in the first quarter of 2025 and an increase of 16.8% in the fourth quarter of 2024. Furthermore, the growth of foreign direct investment (FDI) is expected to play a significant role in the development of the sector.
NSO data shows that in the construction sector, foreign direct investment increased by 7.7% year-on-year in the second quarter of 2025, after a sharp decline of 43.1% in the first quarter of 2025 and a decrease of 55.6% in the fourth quarter of 2024. These figures confirm the growing confidence in the country's energy sector and infrastructure. In April 2025, the construction of the Bagakhangai—Khoshig valley railway began.
It is projected that from 2026 to 2029, the construction industry of Mongolia will show an average annual growth of 4.3%, driven by investments in the transport, energy, and infrastructure sectors.
In September 2025, the government presented to the parliament the draft law on the state budget of Mongolia for 2026. This draft provides for total expenditures of ₮32.98 trillion ($9.6 billion) aimed at ensuring macroeconomic and fiscal stability, as well as improving the quality of life for citizens and accessibility of social services.
The draft state budget for 2026 includes funding for 579 projects and programs through budget investments, of which 149 new projects will be implemented in 2026, while 430 projects will continue from the previous year.
In this budget draft, the government also announced its intention to invest ₮3.9 trillion ($1.1 billion) in energy in 2026. Moreover, the draft sets a national goal to achieve 100% education coverage.
