Moldova

Economy - overview:
Moldova remains one of the poorest countries in Europe despite recent progress from its small economic base. It enjoys a favorable climate and good farmland but has no major mineral deposits. As a result, the economy depends heavily on agriculture, featuring fruits, vegetables, wine, and tobacco. Moldova must import almost all of its energy supplies. Moldova’s dependence on Russian energy was underscored at the end of 2005, when a Russian-owned electrical station in Moldova’s separatist Transnistria region cut off power to Moldova and Russia’s Gazprom cut off natural gas in disputes over pricing, and again in January 2009, during a similar dispute. Russia’s decision to ban Moldovan wine and agricultural products, coupled with its decision to double the price Moldova paid for Russian natural gas, slowed GDP growth in 2006. However, in 2007-08 growth returned to the 6% level Moldova had achieved in 2000-05, boosted by Russia’s partial removal of the bans, solid fixed capital investment, and strong domestic demand driven by remittances from abroad. Economic reforms have been slow because of corruption and strong political forces backing government controls. Nevertheless, the government’s primary goal of EU integration has resulted in some market-oriented progress. The granting of EU trade preferences and increased exports to Russia will encourage higher growth rates, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. The economy remains vulnerable to higher fuel prices, poor agricultural weather, and the skepticism of foreign investors. Also, the presence of an illegal separatist regime in Moldova’s Transnistria region continues to be a drag on the Moldovan economy. The deteriorating global economic crisis did not seriously effect the Moldovan economy in 2008 due to its low exposure to the international financial system, but a global economic slowdown, particularly in the EU and Russia, could hurt the economy in 2009 as Moldova relies heavily on remittances from Moldovans abroad.
GDP (purchasing power parity):
$10.63 billion (2008 est.)
$9.954 billion (2007)
$9.664 billion (2006)
GDP (official exchange rate):
$6.197 billion (2008 est.)
GDP - real growth rate:
7.3% (2008)
3% (2007 est.)
4.8% (2006 est.)
GDP - per capita (PPP):
$2,500 (2008 est.)
$2,300 (2007 est.)
$2,200 (2006 est.)
GDP - composition by sector:
agriculture: 17.3%
industry: 21.5%
services: 61.2% (2008 est.)
Labor force:
1.327 million (2008 est.)
Labor force - by occupation:
agriculture: 40.6%
industry: 16%
services: 43.3% (2005)
Unemployment rate:
2.1%; note - roughly 25% of working age Moldovans are employed abroad (2007 est.)
Household income or consumption by percentage share:
lowest 10%: 3.2%
highest 10%: 26.4% (2003)
Distribution of family income - Gini index:
33.2 (2003)
Investment (gross fixed):
36.1% of GDP (2008 est.)
Budget:
revenues: $1.95 billion
expenditures: $2.01 billion (2008)
Public debt:
21.3% of GDP (2008 est.)
Inflation rate (consumer prices):
7.5% (2008)
Commercial bank prime lending rate:
18.83% (31 December 2007)
Stock of money:
$965 million (31 December 2007)
Stock of quasi money:
$1.449 billion (31 December 2007)
Stock of domestic credit:
$1.896 billion (31 December 2007)
Market value of publicly traded shares:
$573.9 million (2004)
Agriculture - products:
vegetables, fruits, wine, grain, sugar beets, sunflower seed, tobacco; beef, milk
Industries:
sugar, vegetable oil, food processing, agricultural machinery; foundry equipment, refrigerators and freezers, washing machines; hosiery, shoes, textiles
Industrial production growth rate:
6% (2008 est.)
Electricity - production:
3.824 billion kWh (2006 est.)
Electricity - consumption:
5.806 billion kWh (2006 est.)
Electricity - exports:
229 million kWh (2006 est.)
Electricity - imports:
3.741 billion kWh (2006 est.)
Oil - production:
0 bbl/day (2007 est.)
Oil - consumption:
15,770 bbl/day (2006 est.)
Oil - exports:
50.03 bbl/day (2005)
Oil - imports:
14,450 bbl/day (2005)
Oil - proved reserves:
0 bbl (1 January 2006 est.)
Natural gas - production:
50 million cu m (2006 est.)
Natural gas - consumption:
2.44 billion cu m (2007 est.)
Natural gas - exports:
0 cu m (2007 est.)
Natural gas - imports:
2.44 billion cu m (2007 est.)
Natural gas - proved reserves:
0 cu m (1 January 2006 est.)
Current account balance:
-$903 million (2008 est.)
Exports:
$1.79 billion f.o.b. (2008 est.)
Exports - commodities:
foodstuffs, textiles, machinery
Exports - partners:
Russia 25.3%, Romania 13%, Italy 10%, Ukraine 8.7%, Germany 8.5%, Poland 6.2%, Belarus 4.2% (2007)
Imports:
$5 billion f.o.b. (2008 est.)
Imports - commodities:
mineral products and fuel, machinery and equipment, chemicals, textiles
Imports - partners:
Russia 20.5%, Ukraine 15.8%, Romania 15%, Germany 8.7%, Italy 5.7%, Poland 4.1% (2007)
Reserves of foreign exchange and gold:
$1.65 billion (31 December 2008 est.)
Debt - external:
$4.092 billion (31 December 2008 est.)
Stock of direct foreign investment - at home:
$1.813 billion (2008)
Stock of direct foreign investment - abroad:
$NA
Exchange rates:
Moldovan lei (MDL) per US dollar - 10.326 (2008 est.), 12.177 (2007), 13.131 (2006), 12.6 (2005), 12.33 (2004)