Stable economic growth
- Sustainable GDP growth over the last 5 years.
- Industrial output grew by 6.3% in 2005.
- Average nominal salaries grew by 24%.
- “One stop shop” for business licensing was launched.
- Exports primarily consist of agricultural products, which account for about 53% of total exports.
- Both imports and exports continued rising.
Integration with Europe remains a key priority
- The World Bank adopted a new strategy of assistance to Moldova in 2005-2008 with a $137 million loan.
- A preliminary agreement for a pending $157 million Poverty Reduction and Growth Facility was reached with International Monetary Fund.
- The European Union provided 42 million EURO for fulfilling clauses of the three-year Moldova-European Union Action Plan.
- As of June 1, 2005, Moldova has the right for the import of goods from member countries of the Stability Pact for South East Europe in the preference regime.
Investment climate improving
- The influx of direct foreign investments to the Moldovan economy in 2005 constituted $217 million.
- Most significant recipients of investment: energy, food processing, retail and wholesale trade, transportation and communications sectors.
- In 2006, the corporate income tax rate will be reduced to 15% from 18%.
- Formal trade barriers and administrative hurdles with respect to business registration, licensing and tax administration were reduced. The “Guillotine Law” adopted in February 2005, is expected to lead to further cuts in red tape for local and foreign investors.
| Indicators | 2001 | 2002 | 2003 | 2004 | 2005 |
|---|---|---|---|---|---|
| Real GDP Growth, % | 6.1 | 7.2 | 6.3 | 7.3 | 7.1 |
| Average Inflation, % | 9.6 | 5.2 | 15.7 | 12.5 | 10.0 |
| Exchange Rate, USD | 13.0 | 13.6 | 13.9 | 12.3 | 12.9 |
| Current Account Balance, % of GDP | -4.6 | -3.1 | -7.3 | -5.5 | -7.5 |
| Foreign Debt stock, USD billions | 1.0 | 1.2 | 1.4 | 1.4 | 1.4 |
| FDI (USD billions, net) | 147 | 117 | 71 | 88 | 217 |
| Sources: World Bank, EIU, National Bank of Moldova |
