Europe > Moldova > Economy

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Agriculture > products vegetables, fruits, wine, grain, sugar beets, sunflower seed, tobacco; beef, milk
Big Mac Index	$1.84		[50th of 65]
Debt > External	$2,774,000,000.00		[109th of 136]
Distribution of family income > Gini index	33.2		[28th of 43]
Economic freedom	1.8		[93rd of 156]
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.
Exchange rates lei per US dollar - 12.33 (2004), 13.945 (2003), 13.571 (2002), 12.865 (2001), 12.434 (2000)
Exports	$1,361,000,000.00		[129th of 189]
GDP	$3,265,584,000.00		[128th of 203]
GDP > PPP	$7,349,000,000.00		[132nd of 163]
GDP > Real growth rate	3%		[149th of 198]
GDP growth > annual %	7.1 annual %		[30th of 187]
GINI index	33.22		[29th of 40]
Gross National Income	$1,452,660,000.00		[132nd of 172]
Human Development Index	0.671		[116th of 178]
Income category	Low income
Population below poverty line	29.5%		[14th of 46]
Poverty > Share of all poor people	0.05 % of world's poor		[54th of 80]
Public debt	23.3 % of GDP		[85th of 121]
Tourist arrivals	21,000		[140th of 152]

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