Republic of Moldova is ‘almost out of crisis’

After the last days officials showed that Romania has come out of recession, at leat technically speaking, a report launched on Monday in Chişinău shows that the economy of the Republic of Moldova is also about to come out of the crisis.

The economic increase is stopped, however, by the fact that reforms are still missing in several domains.

The report has been done by the non-governmental organization the Institute for Development and Social Initiatives (IDIS Viitorul).

By the end of this year the prices in the Republic of Moldova will increase with 8.4 per cent, the economy with 5.6 per cent and the unemployment will reach 6 per cent.

According to the study released on Monday by the IDIS Viitorul, the year 2010 and the beginning of the current year have been beneficial for the industry.

Increases have been registered in exterior commerce and credits got cheaper. In spite of all this encouraging data, there is still the need for authentic institutional reform, economic analysts Viorel Chivrigă believes.

‘Good results are not followed by strong changes, namely at the foundation, which the national economy should go through. These are at the moment stable changes, but can generate instability in the second half of the year2011’, Viorel Chivrigă stated.

According to Viorel Chivrigă, last year was a good year for agricultures, but their problems are still related poor and low subsidies from the state.

On the other hand, in the first months of this year an increase was recorded in exports, which could continue if the state won’t introduce non-tariff barriers and will simplify procedures for foreign trade.

The experts at IDIS Viitorul criticized the temporary interdiction of the Government for wheat exports.

Economic analyst Alexandru Fală states that a dialogue improvement between business and public institutions is still needed and the achieving of certain objectives shouldn’t be realized on the account of economic agents.

‘The study undertaken by IDIS Viitorul also draws attention that in the Republic of Moldova there is still a considerable gab between economic growth of cities and that of rural areas’, Alexandru Fală declared.

Translated by: Manuela Stancu

MA Student, MTTLC, Bucharest University