est 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 from Russia. Energy shortages contributed
to sharp production declines after the breakup of the Soviet Union
in December 1991. As part of an ambitious reform effort after
independence, Moldova introduced a convertible currency, freed
prices, stopped issuing preferential credits to state enterprises,
backed steady land privatization, removed export controls, and freed
interest rates. The government entered into agreements with the
World Bank and the IMF to promote growth and reduce poverty. The
economy returned to positive growth of 2.1% in 2000, 6.1% in 2001,
7.2% in 2002, 6.3% in 2003, and 6.8% in 2004. Further reforms will
come slowly because of strong political forces backing government
controls. The economy remains vulnerable to higher fuel prices, poor
agricultural weather, and the skepticism of foreign investors.

GDP (purchasing power parity):
$8.581 billion (2004 est.)

GDP - real growth rate:
6.8% (2004 est.)

GDP - per capita:
purchasing power parity - $1,900 (2004 est.)

GDP - composition by sector:
agriculture: 22.4%
industry: 24.8%
services: 52.8% (2004 est.)

Labor force:
1.36 million (2004 est.)

Labor force - by occupation:
agriculture 40%, industry 14%, services 46% (1998)

Unemployment rate:
8% (roughly 25% of working age Moldovans are employed abroad) (2002
est.)

Population below poverty line:
80% (2001 est.)

Household income or consumption by percentage share:
lowest 10%: 2.2%
highest 10%: 30.7% (1997)

Distribution of family income - Gini index:
40.6 (1997)

Inflation rate (consumer prices):
11.5% (2004 est.)

Investment (gross fixed):
17.1% of GDP (2004 est.)

Budget:
revenues: $648.1 million
expenditures: $634.8 million, including capital expenditures of NA
(2004 est.)

Public debt:
63.4% of GDP (2004 est.)

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

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