n 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 six percent or more GDP
growth every year from 2000-2005, 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):
$8.971 billion (2006 est.)

GDP (official exchange rate):
$2.588 billion (2006 est.)

GDP - real growth rate:
4.6% (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%
industry: 14%
services: 46% (1998)

Unemployment rate:
8%; note - 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:
36.2 (2001)

Inflation rate (consumer prices):
12.8% (2006 est.)

Investment (gross fixed):
24.8% of GDP (2006 est.)

Budget:
revenues: $1.318 billion
expenditures: $1.335 billion; including capital expenditures of $NA
(2006 est.)

Public debt:
84.5% 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

Industria