Moldova Economy 2007

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 to Moldova in disputes over pricing. The economy achieved 6% or more GDP growth every year from 2000-05, though this was based largely on consumption fueled by remittances received from Moldovans working abroad. 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 and greatly exacerbated Moldova's economic troubles. 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 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):
$9.066 billion (2006 est.)

GDP (official exchange rate):
$2.573 billion (2006 est.)

GDP - real growth rate:
4% (2006 est.)

GDP - per capita (PPP):
$2,000 (2006 est.)

GDP - composition by sector:
agriculture: 21.5%
industry: 22%
services: 56.5% (2006 est.)

Labor force:
1.339 million (2006 est.)

Labor force - by occupation:
agriculture: 40.7%
industry: 12.1%
services: 47.2% (2005)

Unemployment rate:
7.3%; note - roughly 25% of working age Moldovans are employed abroad (2005 est.)

Population below poverty line:
29.5% (2005)

Household income or consumption by percentage share:
lowest 10%: 3.2%
highest 10%: 26.4% (2003)

Distribution of family income - Gini index:
33.2 (2003)

Inflation rate (consumer prices):
12.7% (2006 est.)

Investment (gross fixed):
27.9% of GDP (2006 est.)

Budget:
revenues: $1.359 billion
expenditures: $1.368 billion (2006 est.)

Public debt:
30% of GDP (2006 est.)

Agriculture - products:
vegetables, fruits, wine, grain, sugar beets, sunflower seed, tobacco; beef, milk

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

Industrial production growth rate:
6.9% (2006 est.)

Electricity - production:
3.881 billion kWh (2005)

Electricity - consumption:
5.551 billion kWh (2005)

Electricity - exports:
220 million kWh (2005)

Electricity - imports:
3.361 billion kWh (2005)

Oil - production:
0 bbl/day (2004 est.)

Oil - consumption:
14,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
2.35 billion cu m (2005 est.)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
2.35 billion cu m (2005)

Current account balance:
$-403.6 million (2006 est.)

Exports:
$1.054 billion f.o.b. (2006 est.)

Exports - commodities:
foodstuffs, textiles, machinery

Exports - partners:
Russia 22.8%, Germany 12.2%, Italy 11.1%, Romania 9.7%, Ukraine 9.6%, Belarus 5.7% (2006)

Imports:
$2.644 billion f.o.b. (2006 est.)

Imports - commodities:
mineral products and fuel, machinery and equipment, chemicals, textiles

Imports - partners:
Russia 20.8%, Ukraine 16.9%, Romania 13.4%, Germany 8.7%, Italy 6.1%, Poland 4.4% (2006)

Economic aid - recipient:
$191.8 million (2005)

Reserves of foreign exchange and gold:
$775.5 million (2006 est.)

Debt - external:
$2.482 billion (2006 est.)

Stock of direct foreign investment - at home:
$NA

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$573.9 million (2004)

Currency (code):
Moldovan leu (MDL)

Exchange rates:
lei per US dollar - 13.131 (2006), 12.6 (2005), 12.33 (2004), 13.945 (2003), 13.571 (2002)