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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

1996

1997

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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