Business and Economy Review, No. 15
Automatically translated summary. The full text is available in Romanian.
Issue No. 15 of the Business and Economy Review, published by Expert-Grup, examines statistical data showing a continued cooling of Moldova's economy. GDP growth in the third quarter of 2006 slowed to 3.9% year on year, as recession in agriculture and industry weighed on the overall result.
The slowdown is explained by recession in the agricultural and industrial sectors. Lifting the Russian import restrictions will no longer change how these sectors perform in 2006 or in the first quarter of 2007. Services compensate for the downturn, although not all branches fare equally well: construction and telecommunications are expanding strongly, while transport remains weak.
Private consumption stays high, fuelled by wages, entrepreneurial activity and above all remittances, which in the first nine months were 23% higher than in 2005. High consumption keeps public budget revenue on target. However, current and capital expenditure were financed at only 87% and 68% respectively. Such underfunding may undermine growth in agriculture and energy, which depend on publicly funded investment.
Recent publications from Economic growth policies
See all
The socio-economic encyclopedia of Moldova, first edition
Moldova must launch a broad fiscal consolidation reform to bring the budget deficit within manageable limits
Monitoring Report on the Implementation of the State Property Management Strategy for State-Owned Enterprises and Companies with Fully or Majority State Capital
