
Economy
Economic and territorial disintegration (armed Transdniestrian conflict) as well as missteps in dealing with the reforms have determined deep and long-drawn economic crisis in Moldova of 1990s. Economic crises lasted for 10 years (from 1990 to 1999 inclusive) having reduced the GDP of Moldova three times.
In 2000 the economy of Moldova returned to positive growth. Within the period of 2000–2003 the GDP has grown 24.1% in real terms, industrial production volume – 54.1%, fixed capital investments – 21.5%.
Moldova’s economy had obtained a revised structure by the start of the period of economic revival. Private sector had become dominating as a result of the reforms. Its share in the GDP of 2002 was 75%, in industrial production – over 80%, in retail – over 95%, in agriculture – up to 100%, in public services – 54%.
Main Economic Indicators
GDP According to the data of the Department for Statistics and Sociology of the Republic of Moldova, Moldova’s GDP of 2004 grew 7.3% (29.6 billion lei (comparable prices) or $2.4 billion).

GDP - per capita In 2000 GDP - per capita equaled $353.7; in 2001 – $408; in 2002 – $459; in 2003 – $542.
Industrial production growth According to the data of the Department for Statistics and Sociology of the Republic of Moldova, in 2004 industrial production growth rate was 6.4% (previous year average prices), that is lower the Government’s prognosis of 11.2% growth. This was the lowest industrial production growth rate for the last four years.
In 2000 the growth rate of industrial production was 8%, in 2001 – 14%, in 2003 – 13.6%.
The Ministry of Economy of the Republic of Moldova forecasts the industrial production growth rate of 13.7% in 2005.
Inflation rate In 2004 inflation rate was 12.5%, that is 2.5% above the Government forecasted.

Privatization In 2004 privatization brought the income of 61 million lei ($5 million). On the whole the privatization in 2004 was unprofitable for the state budget, for the first time since the start of economic reforms in Moldova.
Foreign investments In 2004 after more than a double reduction in 2001-2003 the influx of direct foreign investments started to grow. It increased by 32% for the first six months of 2004 (as compared to the first six months of 2003).
As the average investment index equaled $12 per capita in 2003, Moldova was at the bottom of the foreign investments influx list among Central and Eastern Europe countries.
The Government of Moldova is looking forward to 10% direct foreign investments growth in 2005.

Unemployment rate On January 1, 2005 there were 21 550 unemployed on record in the Job Placement Service of the Republic of Moldova, that exactly the same as to December 2004. Unemployment rate was 8.5% in 2000, 7.3% in 2001, 6.8% in 2002 (as calculated accordingly to the methodology of the International Labor Office).
Economic growth in 2000 – 2003 didn’t give rise in the number of workplaces and employment rate. Number of employed grew 0.7% as compared to the previous year, so unemployment is still a significant problem.
Industrial structure and occupational pattern Within the period of economic growth the share of agriculture has come down a little and the share of industry has grown a little. But the ratio stays unfavorable with agriculture providing 21% of GDP and half of the total number of employed (49.6%) and industry providing 17.3% of GDP and a little bit over one tenth of the total number of employed (11.4%).
Main Macroeconomic Indicators of Moldova as % of the previous year
|
|
1995
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1996
|
1997
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1998
|
1999
|
2000
|
2001
|
2002
|
2003
|
2004
|
Gross domestic product
|
98,6
|
94,1
|
101,6
|
93,5
|
96,6
|
102,1
|
106,1
|
107,8
|
106,6
|
107,3
|
Industrial production
|
96
|
94
|
100,0
|
85
|
88
|
108
|
114
|
111
|
116
|
107
|
Agricultural production
|
103
|
87
|
112
|
88
|
92
|
97
|
106
|
103
|
86
|
120
|
Capital investments
|
84
|
92
|
92
|
110
|
78
|
85
|
111
|
111
|
107
|
108
|
Freight carried
|
99,1
|
90
|
105
|
88
|
63
|
107
|
121
|
122
|
113
|
95
|
Retail trade turnover
|
112
|
118
|
96
|
88
|
73
|
104
|
115
|
134
|
118
|
111
|
Industrial producers price index
|
154
|
132
|
120
|
110
|
144
|
128
|
112
|
105
|
108
|
106
|
Consumer price indices
|
130
|
124
|
112
|
108
|
139
|
131
|
110
|
105
|
112
|
112
|
Export to CIS countries
|
115
|
116
|
112
|
71
|
59
|
109
|
125
|
101
|
121
|
119
|
Export to other countries
|
174
|
90
|
106
|
76
|
103
|
93
|
114
|
132
|
125
|
132
|
Import from CIS countries
|
120
|
115
|
93
|
73
|
55
|
107
|
131
|
120
|
145
|
129
|
Import from other countries
|
148
|
154
|
135
|
103
|
59
|
150
|
107
|
114
|
129
|
124
|
Source: Interstate Statistical Committee of the CIS
Statistics
Department for Statistics and Sociology of the Republic of Moldova - www.statistica.md
Interstate Statistical Committee of the CIS - www.cisstat.com
Official statistical information on social and economic situation in the CIS countries
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