Moldova Economy Profile 2012

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. In January 2009, gas supplies were cut during a dispute between Russia and Ukraine. Russia's decision to ban Moldovan wine and agricultural products, coupled with its decision to double the price Moldova paid for Russian natural gas, have hurt growth. The onset of the global financial crisis and poor economic conditions in Moldova's main foreign markets caused GDP to fall 6% in 2009. Unemployment almost doubled and inflation disappeared - at -0.1%, a record low. Moldova's IMF agreement expired in May 2009. In fall 2009, the IMF allocated $186 million to Moldova to cover its immediate budgetary needs, and the government signed a new agreement with the IMF in January 2010 for a program worth $574 million. In 2010, an upturn in the world economy boosted GDP growth to 6.5% and inflation to 7.3%. 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 has made a modest recovery, but remains vulnerable to political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices, poor agricultural weather, and the skepticism of foreign investors as well as the presence of an illegal separatist regime in Moldova's Transnistria region.

GDP (purchasing power parity)

$10.99 billion (2010 est.)
$10.28 billion (2009 est.)
$10.93 billion (2008 est.)
note: data are in 2010 US dollars

GDP (official exchange rate)

$5.81 billion (2010 est.)

GDP - real growth rate

6.9% (2010 est.)
-6% (2009 est.)
7.8% (2008 est.)

GDP - per capita (PPP)

$2,500 (2010 est.)
$2,400 (2009 est.)
$2,500 (2008 est.)
note: data are in 2010 US dollars

GDP - composition by sector

agriculture: 16.3%
industry: 20%
services: 63.8% (2010 est.)

Population below poverty line

26.3% (2009)

Labor force

1.235 million (2010 est.)

Labor force - by occupation

agriculture: 40.6%
industry: 16%
services: 43.3% (2005)

Unemployment rate

7.5% (2010 est.)
6.4% (2009 est.)

Unemployment, youth ages 15-24

total: 15.4%
male: 15.8%
female: 14.9% (2009)

Household income or consumption by percentage share

lowest 10%: 2.9%
highest 10%: 29.8% (2008)

Distribution of family income - Gini index

38 (2008)
33.2 (2003)

Investment (gross fixed)

22.7% of GDP (2010 est.)

Budget

revenues: $2.227 billion
expenditures: $2.371 billion (2010 est.)

Taxes and other revenues

38.3% of GDP (2010 est.)

Budget surplus (+) or deficit (-)

-2.5% of GDP (2010 est.)

Public debt

21.2% of GDP (2010 est.)
24.4% of GDP (2009 est.)

Inflation rate (consumer prices)

7.4% (2010 est.)
-0.1% (2009 est.)

Commercial bank prime lending rate

16.36% (31 December 2010 est.)
20.54% (31 December 2009 est.)

Stock of money

$1.116 billion (31 December 2008)
$965 million (31 December 2007)

Stock of narrow money

$1.293 billion (31 December 2010 est.)
$1.074 billion (31 December 2009 est.)

Stock of broad money

$3.049 billion (31 December 2010 est.)
$2.657 billion (31 December 2009 est.)

Stock of quasi money

$1.928 billion (31 December 2008)
$1.449 billion (31 December 2007)

Stock of domestic credit

$2.199 billion (31 December 2010 est.)
$2.033 billion (31 December 2009 est.)

Market value of publicly traded shares

$573.9 million (2004)
$573.9 million (2004)

Agriculture - products

vegetables, fruits, grapes, grain, sugar beets, sunflower seed, tobacco; beef, milk; wine

Industries

sugar, vegetable oil, food processing, agricultural machinery; foundry equipment, refrigerators and freezers, washing machines; hosiery, shoes, textiles

Industrial production growth rate

7% (2010 est.)

Electricity - production

3.412 billion kWh (2008 est.)

Electricity - production by source

fossil fuel: 90.6%
hydro: 9.4%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

4.463 billion kWh (2008 est.)

Electricity - exports

0 kWh (2008 est.)

Electricity - imports

2.958 billion kWh (2008 est.)

Oil - production

0 bbl/day (2010 est.)

Oil - consumption

20,000 bbl/day (2010 est.)

Oil - exports

741 bbl/day (2009 est.)

Oil - imports

14,730 bbl/day (2009 est.)

Oil - proved reserves

0 bbl (1 January 2011 est.)

Natural gas - production

60,000 cu m (2010 est.)

Natural gas - consumption

3.176 billion cu m (2010 est.)

Natural gas - exports

0 cu m (2010 est.)

Natural gas - imports

2.33 billion cu m (2009 est.)

Natural gas - proved reserves

0 cu m (1 January 2011 est.)

Current Account Balance

-$482.3 million (2010 est.)
-$469.2 million (2009 est.)

Exports

$1.59 billion (2010 est.)
$1.327 billion (2009 est.)

Exports - commodities

foodstuffs, textiles, machinery

Exports - partners

Russia 23.8%, Italy 13%, Romania 10.9%, Turkey 6.6%, Germany 6.3%, Ukraine 5.5%, Belarus 5% (2010)

Imports

$3.81 billion (2010 est.)
$3.276 billion (2009 est.)

Imports - commodities

mineral products and fuel, machinery and equipment, chemicals, textiles

Imports - partners

Ukraine 16.3%, Romania 15.4%, Russia 11%, Germany 8.6%, Italy 5.6%, Kazakhstan 5%, Belarus 4.2% (2010)

Reserves of foreign exchange and gold

$1.718 billion (31 December 2010 est.)
$1.48 billion (31 December 2009 est.)

Debt - external

$5.056 billion (30 June 2011 est.)
$3.697 billion (31 December 2010 est.)

Stock of direct foreign investment - at home

$2.649 billion (1 January 2010 est.)
$1.813 billion (2008)

Stock of direct foreign investment - abroad

$62.44 million (1 January 2010)

Exchange rates

Moldovan lei (MDL) per US dollar -
12.37 (2010)
11.11 (2009)
10.326 (2008)
12.177 (2007)
13.131 (2006)