Moldova:
Economy

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Other pages in this profile of Moldova:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition 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)	Definition - World rank and map $9.821 billion (2007 est.)
GDP (official exchange rate)	Definition $4.227 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 5% (2007 est.)
GDP - per capita	Definition - World rank and map $2,900 (2007 est.)
GDP - composition by sector	Definition agriculture: 17.8% industry: 21.7% services: 60.5% (2007 est.)
Labor force	Definition 1.333 million (2007 est.)
Labor force - by occupation	Definition agriculture: 40.7% industry: 12.1% services: 47.2% (2005)
Unemployment rate	Definition - World rank and map 2.1%; note - roughly 25% of working age Moldovans are employed abroad (2007 est.)
Population below poverty line	Definition 29.5% (2005)
Household income or consumption by percentage share	Definition lowest 10%: 3.2% highest 10%: 26.4% (2003)
Distribution of family income - Gini index	Definition - World rank and map 33.2 (2003)
Inflation rate (consumer prices)	Definition - World rank and map 12.6% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 33.3% of GDP (2007 est.)
Budget	Definition revenues: $1.83 billion expenditures: $1.841 billion (2007 est.)
Public debt	Definition - World rank and map 23.3% of GDP (2007 est.)
Agriculture - products	Definition vegetables, fruits, wine, grain, sugar beets, sunflower seed, tobacco; beef, milk
Industries	Definition sugar, vegetable oil, food processing, agricultural machinery; foundry equipment, refrigerators and freezers, washing machines; hosiery, shoes, textiles
Industrial production growth rate	Definition - World rank and map 1% (2007 est.)
Electricity - production	Definition - World rank and map 3.881 billion kWh (2005)
Electricity - consumption	Definition - World rank and map 5.551 billion kWh (2005)
Electricity - consumption per capita	Definition - World rank and map 1,283.7 kWh (2005)
Electricity - exports	Definition 220 million kWh (2005)
Electricity - imports	Definition 3.361 billion kWh (2005)
Oil - production	Definition - World rank and map 0 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 14,500 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 3.4 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 31.69 bbl/day (2004)
Oil - imports	Definition - World rank and map 14,200 bbl/day (2004)
Oil - proved reserves	Definition - World rank and map 0 bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 2.35 billion cu m (2005 est.)
Natural gas - consumption per capita	Definition - World rank and map 543 cu m (2005 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - imports	Definition - World rank and map 2.35 billion cu m (2005)
Natural gas - proved reserves	Definition - World rank and map 0 cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$410 million (2007 est.)
Exports	Definition - World rank and map $1.361 billion f.o.b. (2007 est.)
Exports - commodities	Definition foodstuffs, textiles, machinery
Exports - partners	Definition Russia 20.8%, Romania 13.9%, Italy 10.7%, Ukraine 9.3%, Germany 9%, Poland 6.7%, Belarus 4.5% (2006)
Imports	Definition - World rank and map $3.677 billion f.o.b. (2007 est.)
Imports - commodities	Definition mineral products and fuel, machinery and equipment, chemicals, textiles
Imports - partners	Definition Russia 20%, Ukraine 15.8%, Romania 15%, Germany 8.8%, Italy 5.7%, Poland 4.1% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $1.334 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $3.3 billion (31 December 2007)
Stock of direct foreign investment - at home	Definition $NA
Stock of direct foreign investment - abroad	Definition $NA
Market value of publicly traded shares	Definition $573.9 million (2004)
Economic aid - recipient	Definition $191.8 million (2005)
Currency (code)	Definition Moldovan leu (MDL)
Exchange rates	Definition lei per US dollar - 12.177 (2007), 13.131 (2006), 12.6 (2005), 12.33 (2004), 13.945 (2003)
Fiscal year	Definition calendar year

Moldova: Economy

Moldova:
Economy