Economy Of Moldova

Economy overview Moldova remains the poorest country 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 from Russia. Energy shortages contributed to sharp production declines after the breakup of the Soviet Union in 1991. As part of an ambitious reform effort, Moldova introduced a convertible currency, freed prices, stopped issuing preferential credits to state enterprises, backed steady land privatization, removed export controls, and freed interest rates. The government entered into agreements with the World Bank and the IMF to promote growth and reduce poverty. The economy returned to positive growth, of 2.1% in 2000, 6.1% in 2001, 7.2% in 2002, and 6.3% in 2003. Further reforms will come slowly because of strong political forces backing government controls. The economy remains vulnerable to higher fuel prices, poor agricultural weather, and the skepticism of foreign investors.
 
GDP purchasing power parity - $7.792 billion (2004 est.)
 
GDP - real growth rate 6.3% (2004 est.)
 
GDP - per capita purchasing power parity - $1,800 (2004 est.)
 
GDP - composition by sector
agriculture: 21%
industry: 27%
services: 52% (2004 est.)
 
Investment gross fixed 17.2% of GDP (2004 est.)
 
Population below poverty line 80% (2001 est.)
 
Household income or consumption by percentage share
lowest 10%: 2.2%
highest 10%: 30.7% (1997)
 
Distribution of family income - Gini index 40.6 (1997)
 
Inflation rate consumer prices 11.6% (2004 est.)
 
Labor force 1.383 million (2004 est.)
 
Labor force by occupation agriculture 40%, industry 14%, services 46% (1998)
 
Unemployment rate 8% (roughly 25% of working age Moldovans are employed abroad) (2002 est.)
 
Budget
revenues: $474.8 million
expenditures: $443.4 million, including capital expenditures of NA (2004 est.)
 
Public debt 88.4% of GDP (2004 est.)
 
Agriculture products vegetables, fruits, wine, grain, sugar beets, sunflower seed, tobacco; beef, milk
 
Industries food processing, agricultural machinery, foundry equipment, refrigerators and freezers, washing machines, hosiery, sugar, vegetable oil, shoes, textiles
 
Industrial production growth rate 17% (2003 est.)
 
Electricity production 3.394 billion kWh (2001)
 
Electricity production by source
fossil fuel: 90.6%
hydro: 9.4%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 3.216 billion kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 60 million kWh (2001)
 
Oil production 0 bbl/day (2001 est.)
 
Oil consumption 24,000 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves  
Natural gas production 0 cu m (2001 est.)
 
Natural gas consumption 2.05 billion cu m (2001 est.)
 
Natural gas exports 0 cu m (2001 est.)
 
Natural gas imports 2.05 billion cu m (2001 est.)
 
Natural gas proved reserves  
Current account balance $-135 million (2004 est.)
 
Exports $790 million f.o.b. (2004 est.)
 
Exports commodities foodstuffs, textiles, machinery
 
Exports partners Russia 39%, Romania 11.4%, Italy 10.4%, Germany 7.1%, Ukraine 7.1%, Belarus 5.2%, US 4.3% (2003)
 
Imports $1.34 billion f.o.b. (2003 est.)
 
Imports commodities mineral products and fuel 32%, machinery and equipment, chemicals, textiles (2000)
 
Imports partners Ukraine 22%, Russia 13%, Germany 9.7%, Italy 8.3%, Romania 7% (2003)
 
Reserves of foreign exchange gold $302.3 million (2004 est.)
 
Debt external $1.515 billion (2004 est.)
 
Economic aid recipient $100 million (2000)
 
Currency Moldovan leu (MDL)
 
Currency code MDL
 
Exchange rates lei per US dollar - 13.9449 (2003), 13.5705 (2002), 12.8651 (2001), 12.4342 (2000), 10.5158 (1999)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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