Moldova



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Moldova Economy 2008


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. 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 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 in 2008, 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.
GDP (purchasing power parity): $9.756 billion (2007 est.)
GDP (official exchange rate): $4.227 billion (2007 est.)
GDP - real growth rate: 3% (2007 est.)
GDP - per capita (PPP): $2,300 (2007 est.)
GDP - composition by sector: agriculture: 17.8% industry: 21.7% services: 60.5% (2007 est.)
Labor force: 1.333 million (2007 est.)
Labor force - by occupation: agriculture: 40.7% industry: 12.1% services: 47.2% (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): 33.3% of GDP (2007 est.)
Budget: revenues: $1.83 billion expenditures: $1.841 billion (2007 est.)
Public debt: 23.3% of GDP (2007 est.)
Inflation rate (consumer prices): 12.3% (2007 est.)
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)
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: 1% (2007 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: -$694.7 million (2007 est.)
Exports: $1.361 billion f.o.b. (2007 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: $3.677 billion f.o.b. (2007 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: $1.334 billion (31 December 2007 est.)
Debt - external: $3.3 billion (31 December 2007)
Stock of direct foreign investment - at home: $NA
Stock of direct foreign investment - abroad: $NA
Market value of publicly traded shares: $573.9 million (2004)
Currency (code): Moldovan leu (MDL)
Exchange rates: Moldovan lei (MDL) per US dollar - 12.177 (2007), 13.131 (2006), 12.6 (2005), 12.33 (2004), 13.945 (2003)

NOTE: The economy information regarding Moldova on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Moldova Economy 2008 information contained here. All suggestions for corrections of any errors about Moldova Economy 2008 should be addressed to the CIA.