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Economy Moldova

Economy - overview:
Moldova remains the poorest country 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 1991.
As part of an ambitious reform effort, 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, and 6.3% in 2003.
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 - $7.792 billion (2003 est.)

GDP - real growth rate:
6.3% (2003 est.)

GDP - per capita:
purchasing power parity - $1,800 (2003 est.)

GDP - composition by sector:
agriculture: 21%
industry: 27%
services: 52% (2003)

Investment (gross fixed):
17.2% of GDP (2003)

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):
11.6% (2003 est.)

Labor force:
1.383 million (2003)

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.)

Budget:
revenues: $474.8 million
expenditures: $443.4 million, including capital expenditures of NA
(2003 est.)

Public debt:
88.4% of GDP (2003)

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

Industries:
food processing, agricultural machinery, foundry equipment,
refrigerators and fre