Economic overview Moldova, in 34 editions.

Moldova, the next-to-smallest of the former Soviet republics in area, is the
most densely inhabited. Moldova has a little more than 1% of the population,
labor force, capital stock, and output of the former Soviet Union. Living
standards have been below average for the European USSR. The country enjoys
a favorable climate, and economic development has been primarily based on
agriculture, featuring fruits, vegetables, wine, and tobacco. Industry
accounts for 20% of the labor force, whereas agriculture employs more than
one-third. Moldova has no major mineral resources and has depended on the other
former Soviet republics for coal, oil, gas, steel, most electronic
equipment, machine tools, and major consumer durables such as automobiles.
Its industrial and agricultural products, in turn, have been exported to the
other former Soviet republics. Moldova has freed prices on most goods and
has legalized
private ownership of property, including agricultural land.
property. Moldova's near-term economic prospects are dimmed
dimmed, however, by the difficulties of moving toward
a market economy and economy, the
political problems of redefining ties to the other
former Soviet republics
and Romania. Romania, and the ongoing separatist movements in the Dniester and Gagauz
regions. In 1992, national output fell substantially for the second
consecutive year - down 22% in the industrial sector and 20% in agriculture.
The decline is mainly attributable to the drop in energy supplies.

Moldova enjoys a favorable climate and good
farmland but has
no major mineral deposits. As a result, Moldova's the economy is primarily
based depends heavily on agriculture, featuring fruits, vegetables, wine,
and tobacco.
Moldova must import all of its supplies of oil, coal, and natural gas,
and energy natural gas. Energy shortages have contributed to sharp
production declines
since the breakup of the Soviet Union in 1991.
The Moldovan government
is Government has been making steady progress on an
ambitious economic reform agenda, and
the IMF has called Moldova a
model for the region. As part of its
reform efforts, Chisinau has
introduced a stable convertible currency, freed all
prices, stopped
issuing preferential credits to state enterprises and
backed their
steady privatization, removed export controls, and freed
interest
rates. Chisinau appears strongly committed to continuing
these reforms in 1995. Meanwhile, privatization of medium and large
enterprises got underway reforms in mid-1994 and is expected to pick up speed 1996. Published estimates probably overstated the decline
in 1995. To improve its precarious energy situation, Chisinau reached
an agreement with Moscow output in December 1994 on gas deliveries for 1995.
Gazprom, Russia's national gas company, has agreed to reduce prices
for natural gas deliveries to Moldova from 1991-94; the world market price of
$80/thousand cubic meters (tcm) to $58/tcm in return $2,310 per capita figure for part GDP thus is a
ownership of the Moldovan pipeline system. minimum estimate.

Moldova 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 all of its supplies of oil, coal,
and
natural gas. gas, largely from Russia. Energy shortages have contributed to sharp
sharp production declines since after the breakup of the Soviet Union in 1991.
1991. The Moldovan Government has recently been making steady progress on an
ambitious economic reform agenda, and the IMF has called Moldova a
model for the region. As part of its reform efforts, Chisinau has Moldova
introduced a stable convertible currency, freed all prices, stopped
issuing preferential credits to state enterprises and backed their
steady privatization, removed export controls, and freed interest
rates. Chisinau appears strongly committed to continuing these
reforms in 1996. Published estimates probably overstated With the decline
in output election of President LUCINSCHI in 1991-94; the $2,310 per capita figure for GDP thus is a December 1996, it
minimum estimate. is unclear how rapidly the reforms will be pushed.

Moldova 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 all of its supplies of oil, coal, and
natural gas, largely from Russia. Energy shortages contributed to
sharp production declines after the breakup of the Soviet Union in
1991. The Moldovan Government has recently been making progress on an
ambitious economic reform agenda, and the IMF has called Moldova a
model for the region. agenda. As part of its reform efforts, Moldova
Moldova introduced a stable convertible currency, freed all prices, stopped
stopped issuing preferential credits to state enterprises and backed their
steady land privatization, removed export controls, and freed interest
rates. With The IMF has suspended payment on Moldova's Extended Fund
Facility since November 1997, due to concerns about the election of President LUCINSCHI in budget deficit
and money supply growth. In late December 1996, it Parliament agreed to a lower
is unclear how rapidly the reforms will be pushed. 1998 budget deficit to address IMF and World Bank concerns.

Moldova enjoys a favorable climate and good farmland
farmland but has no major mineral deposits. As a result, the economy depends
depends heavily on agriculture, featuring fruits, vegetables, wine, and
and tobacco. Moldova must import all of its supplies of oil, coal, and
and natural gas, largely from Russia. Energy shortages contributed to
to sharp production declines after the breakup of the Soviet Union in
in 1991. The Moldovan Government has recently been making progress
on an
ambitious economic reform agenda. As part of its reform efforts,
efforts, Moldova introduced a stable convertible currency, freed all prices,
prices, stopped issuing preferential credits to state enterprises
and backed
steady land privatization, removed export controls, and
freed interest
rates. The In 1998, the economic troubles of Russia, with
whom Moldova conducts 55% of its trade, was a major cause of the
8.6% drop in GDP. In 1999, the IMF has suspended resumed payment on Moldova's
Extended Fund
Facility Facility, which had been suspended since November 1997, due to concerns about the budget deficit
and money supply growth. In late December Parliament agreed to a lower 1997. The IMF
1998 budget deficit intends to address IMF and World Bank concerns. grant $135 million in 1999.

Moldova 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 all of its supplies of oil, coal,
and natural gas, largely from Russia. Energy shortages contributed
to sharp production declines after the breakup of the Soviet Union
in 1991. The Moldovan Government has recently been making progress
on an ambitious economic reform agenda. As part of its an ambitious reform
efforts, effort, Moldova introduced a stable convertible currency, freed all
prices, stopped issuing preferential credits to state enterprises
and enterprises, backed steady land privatization, removed export controls, and
freed interest rates. Yet these efforts could not offset the impact of political and economic difficulties, both internal and regional. In 1998, the economic troubles of Russia, with
whom Moldova conducts 55% of its trade, was by far Moldova's leading trade partner, were a major cause of the
8.6% drop in GDP. GDP; the value of the currency in relation to the dollar fell by half. In 1999, GDP fell again, by 4.4%, the IMF resumed payment on Moldova's
Extended Fund Facility, which had been suspended since 1997. The IMF
intends fifth drop in the past six years; exports were down, and energy supplies continued erratic. GDP is expected to grant $135 million remain at about the same level in 1999. 2000.

Moldova 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 all of its supplies of oil, coal, and natural gas, largely 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 stable convertible currency, freed all prices, stopped issuing preferential credits to state enterprises, backed steady land privatization, removed export controls, and freed interest rates. Yet these efforts could not offset the impact of political and economic difficulties, both internal and regional. In 1998, the economic troubles of Russia, by far Moldova's leading trade partner, were a major cause of the 8.6% drop in GDP; the value of the currency in relation to the dollar fell by half. GDP. In 1999, GDP fell again, by 4.4%, the fifth drop in the past six seven years; exports were down, and energy supplies continued to be erratic. GDP is expected to remain at about the same level declined slightly in 2000. 2000, with a serious drought hurting agriculture. Growth should turn positive in 2001.

Moldova 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 all of its supplies of oil, coal, and natural gas, largely 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 all prices, stopped issuing preferential credits to state enterprises, backed steady land privatization, removed export controls, and freed interest rates. Yet these efforts could not offset The government entered into agreements with the impact of political and economic difficulties, both internal World Bank and regional. In 1998, the economic troubles of Russia, by far Moldova's leading trade partner, were a major cause IMF to promote growth and reduce poverty. The economy returned to positive growth, of the 8.6% drop 2.1% in GDP. In 1999, GDP fell again, by 4.4%, the fifth drop 2000 and 6.1% in 2001. Growth remained strong in 2002, in part because of the past seven years; exports were down, reforms and energy supplies continued to be erratic. GDP declined slightly in 2000, with because of starting from a serious drought hurting agriculture. Growth should turn positive small base. Further reforms are in 2001. doubt because of strong political forces backing government controls. The economy remains vulnerable to higher fuel prices, poor agricultural weather, and the scepticism of foreign investors.

Moldova remains a very poor country 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 all of its supplies of oil, coal, and natural gas, largely 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 all 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 and 2000, 6.1% in 2001. Growth remained strong 2001, 7.2% in 2002, in part because of the reforms and because of starting from a small base. 5.3% in 2003. Further reforms are in doubt will come slowly because of strong political forces backing government controls. The economy remains vulnerable to higher fuel prices, poor agricultural weather, and the scepticism skepticism of foreign investors.

Moldova remains a very poor 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 of oil, coal, and natural gas, largely 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 all 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 5.3% 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.

Moldova remains one of the poorest country 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, 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, growth of 2.1% in 2000, 6.1% in 2001, 7.2% in 2002, and 6.3% in 2003. 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.

Moldova remains one of the poorest 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. supplies. 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. has remained at or above 6% every year since. 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.

Moldova remains one of the poorest 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. Energy shortages contributed to sharp production declines after the breakup of Moldova's dependence on Russian energy was underscored at the Soviet Union in December 1991. As part end of an ambitious reform effort after independence, Moldova introduced 2005, when a convertible currency, freed prices, stopped issuing preferential credits Russian-owned electrical station in Moldova's separatist Transnistria region cut off power to state enterprises, backed steady land privatization, removed export controls, and freed interest rates. The government entered into agreements with the World Bank Moldova and the IMF Russia's Gazprom cut off natural gas to promote growth and reduce poverty. Moldova in disputes over pricing. The economy returned achieved 6% or more GDP growth every year from 2000-05, though this was based largely on consumption fueled by remittances received from Moldovans working abroad. Russia's decision to positive ban Moldovan wine and agricultural products, coupled with its decision to double the price Moldova paid for Russian natural gas, slowed GDP growth in 2000, 2006 and has remained at or above 6% every year since. Further greatly exacerbated Moldova's economic troubles. Economic reforms will come slowly have been slow because of corruption and strong political forces backing government controls. 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.

Moldova remains one of the poorest 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. Moldova's dependence on Russian energy was underscored at the end of 2005, when 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 6% or more GDP growth every year from 2000-05, 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 2006. However, in 2007 growth returned to the 6% level Moldova had achieved in 2000-05, boosted by Russia's partial removal of the bans, solid fixed capital investment, and greatly exacerbated Moldova's economic troubles. strong domestic demand driven by remittances from abroad. Economic reforms have been slow because of corruption and strong political forces backing government controls; nevertheless, controls. Nevertheless, the government's primary goal of EU integration has resulted in some market-oriented progress. The granting of EU trade preferences and increased exports to Russia will encourage higher growth rates in 2008, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. 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.

Moldova remains one of the poorest 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. Moldova's dependence on Russian energy was underscored at the end of 2005, when a Russian-owned electrical station in Moldova's separatist Transnistria region cut off power to Moldova and Russia's Gazprom cut off natural gas in disputes over pricing. pricing, and again in January 2009, during a similar dispute. 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. 2006-07. However, in 2007 2008 growth returned to exceeded the 6% level Moldova had achieved in 2000-05, boosted by Russia's partial removal of the bans, solid fixed capital investment, and strong domestic demand driven by remittances from abroad. 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 granting of EU trade preferences and increased exports to Russia will encourage higher growth rates in 2008, rates, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. 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. The deteriorating global economic crisis did not seriously effect the Moldovan economy in 2008 due to its low exposure to the international financial system, but a global economic slowdown, particularly in the EU and Russia, could hurt the economy in 2009 as Moldova relies heavily on remittances from Moldovans abroad.

Moldova remains one of the poorest 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. Moldova's dependence on Russian energy was underscored at the end of 2005, when a Russian-owned electrical station in Moldova's separatist Transnistria region cut off power to Moldova and Russia's Gazprom cut off natural gas in disputes over pricing, and again in pricing. In January 2009, gas supplies were cut during a similar dispute. dispute between Russia and Ukraine. 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 have hurt growth. The onset of the global financial crisis and poor economic conditions in Moldova's main foreign markets, caused GDP growth to fall 6.5% in 2006-07. However, 2009. Unemployment almost doubled and inflation disappeared - at -0.1%, a record low. Moldova's IMF agreement expired in 2008 growth exceeded May 2009. In fall 2009, the 6% level IMF allocated $186 million to Moldova had achieved to cover its immediate budgetary needs, and the government signed an new agreement with the IMF in 2000-05, boosted by Russia's partial removal of January 2010 for a program worth $574 million. In 2010, an upturn in the bans, solid fixed capital investment, world economy boosted GDP growth to 3.1% and strong domestic demand driven by remittances from abroad. inflation to 7.3%. 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 granting of EU trade preferences and increased exports to Russia will encourage higher growth rates, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. The economy has made a modest recovery, but remains vulnerable to political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices, poor agricultural weather, and the skepticism of foreign investors. Also, investors as well as the presence of an illegal separatist regime in Moldova's Transnistria region continues to be a drag on the Moldovan economy. The deteriorating global economic crisis did not seriously effect the Moldovan economy in 2008 due to its low exposure to the international financial system, but a global economic slowdown, particularly in the EU and Russia, could hurt the economy in 2009 as Moldova relies heavily on remittances from Moldovans abroad. region.

Moldova remains one of the poorest 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. Moldova's dependence on Russian energy was underscored at the end of 2005, when a Russian-owned electrical station in Moldova's separatist Transnistria region cut off power to Moldova and Russia's Gazprom cut off natural gas in disputes over pricing. In January 2009, gas supplies were cut during a dispute between Russia and Ukraine. Russia's decision to ban Moldovan wine and agricultural products, coupled with its decision to double the price Moldova paid for Russian natural gas, have hurt growth. The onset of the global financial crisis and poor economic conditions in Moldova's main foreign markets, markets caused GDP to fall 6.5% 6% in 2009. Unemployment almost doubled and inflation disappeared - at -0.1%, a record low. Moldova's IMF agreement expired in May 2009. In fall 2009, the IMF allocated $186 million to Moldova to cover its immediate budgetary needs, and the government signed an a new agreement with the IMF in January 2010 for a program worth $574 million. In 2010, an upturn in the world economy boosted GDP growth to 3.1% 6.5% and inflation to 7.3%. 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 granting of EU trade preferences and increased exports to Russia will encourage higher growth rates, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. The economy has made a modest recovery, but remains vulnerable to political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices, poor agricultural weather, and the skepticism of foreign investors as well as the presence of an illegal separatist regime in Moldova's Transnistria region.

Moldova remains one of the poorest 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. Moldova's dependence on Russian energy was underscored at the end of 2005, when a Russian-owned electrical station in Moldova's separatist Transnistria region cut off power to Moldova and Russia's Gazprom cut off natural gas in disputes over pricing. In January 2009, gas supplies were cut during a dispute between Russia and Ukraine. Russia's decision Previous Russian decisions to ban Moldovan wine and agricultural products, coupled with its decision to double the price Moldova paid for Russian natural gas, have hurt growth. economic growth in the past. The onset of the global financial crisis and poor economic conditions in Moldova's main foreign markets caused GDP to fall 6% in 2009. Unemployment almost doubled and inflation disappeared - at dropped to -0.1%, a record low. Moldova's IMF agreement expired in May 2009. In fall 2009, the IMF allocated $186 million to Moldova to cover its immediate budgetary needs, and the government signed a new agreement with the IMF in January 2010 for a program worth $574 million. In 2010, an upturn in the world economy boosted GDP growth to 6.5% about 7% per year and inflation to 7.3%. more than 7%. 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 granting of EU trade preferences and increased exports to Russia will should encourage higher growth rates, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. The economy has made a modest recovery, growing by 6.4% in 2011 and 3% in 2012, but remains vulnerable to political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices, poor agricultural weather, prices and the skepticism concerns of foreign investors as well as the presence of an illegal separatist regime in Moldova's Transnistria region.

Moldova remains one of the poorest countries in Europe despite recent progress from its small economic base. It enjoys a favorable With its moderate climate and good farmland but has no major mineral deposits. As a result, the farmland, Moldova's economy depends relies heavily on agriculture, its agriculture sector, featuring fruits, vegetables, wine, and tobacco. With few natural energy resources, Moldova must import imports almost all of its energy supplies. supplies from Russia and Ukraine. Moldova's dependence on Russian energy was is underscored at the end of 2005, when a Russian-owned electrical station in Moldova's separatist Transnistria region cut off power by an estimated $4.3 billion debt to Moldova and Russia's Russian natural gas supplier Gazprom cut off due largely to unreimbursed natural gas consumption in disputes over pricing. In January 2009, gas supplies were cut during a dispute between Russia and Ukraine. the separatist Transnistria region. Previous Russian decisions to ban Moldovan wine and agricultural products, coupled with its their decision to double the price Moldova paid for Russian natural gas, have hurt gas and the large debt continue to hamper economic growth growth. Moldova also depends heavily on the annual $1 billion in remittances from the past. The onset of estimated one million Moldovans working in Europe and former Soviet Bloc countries. During the global financial crisis and poor economic conditions in Moldova's main foreign markets caused GDP to fall 2009, Moldova experienced a 6% in 2009. Unemployment almost doubled and inflation dropped to -0.1%, contraction of its GDP, a record low. Moldova's IMF agreement expired shrinkage due to increased unemployment and decrease in May 2009. In fall 2009, remittances. To stabilize the country, the IMF allocated $186 million to Moldova to cover its immediate budgetary needs, needs in the fall of 2009, and the government signed a new agreement Moldovan Government agreeing with the IMF in January 2010 for to a new program worth $574 million. In 2010, an upturn in the world economy boosted GDP growth to about 7% per year and inflation to more than 7%. 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 granting of EU trade preferences should encourage has encouraged higher growth rates, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. The economy has made a had modest recovery, growing by 6.4% growth in 2011 and 3% 2011, expanding by 6.8%. However, in 2012, but with the Euro crisis and a devastating drought, Moldova's GDP stalled at an estimated 0.3% growth over 2011. Moldova's economic future remains vulnerable to political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices and the concerns of foreign investors as well as the presence of an illegal separatist regime in Moldova's Transnistria region.

Despite recent progress, Moldova remains one of the poorest countries in Europe. With a moderate climate and good farmland, Moldova's economy relies heavily on its agriculture sector, featuring fruits, vegetables, wine, and tobacco. Moldova also depends on annual remittances of about $1.6 billion from the roughly one million Moldovans working in Europe, Russia, and other former Soviet Bloc countries. With few natural energy resources, Moldova imports almost all of its energy supplies from Russia and Ukraine. Moldova's dependence on Russian energy is underscored by a growing $5 billion debt to Russian natural gas supplier Gazprom, largely the result of unreimbursed natural gas consumption in the separatist Transnistria region. In August 2013, work began on a new pipeline between Moldova and Romania that may eventually break Russia's monopoly on Moldova's gas supplies. The government's goal of EU integration has resulted in some market-oriented progress. Moldova experienced better than expected economic growth in 2013 2014 due to increased agriculture production, to economic policies adopted by the Moldovan government since 2009, and to the receipt of EU trade preferences. Moldova is poised to sign signed an Association Agreement and a Deep and Comprehensive Free Trade Agreement with the EU during fall 2014, connecting Moldovan products to the world’s largest market. Still, growth has been hampered by high prices for Russian natural gas, a Russian import ban on Moldovan wine, increased foreign scrutiny of Moldovan agricultural products, and by Moldova’s large external debt. Over the longer term, Moldova's economy remains vulnerable to political uncertainty, weak administrative capacity, vested bureaucratic interests, corruption, higher fuel prices, Russian pressure, and the illegal separatist regime in Moldova's Transnistria region.

Despite recent progress, Moldova remains one of the poorest countries in Europe. With a moderate climate and good productive farmland, Moldova's economy relies heavily on its agriculture sector, featuring fruits, vegetables, wine, and tobacco. Moldova also depends on annual remittances of about $1.6 $1.12 billion from the roughly one million Moldovans working in Europe, Russia, and other former Soviet Bloc countries.
With few natural energy resources, Moldova imports almost all of its energy supplies from Russia and Ukraine. Moldova's dependence on Russian energy is underscored by a growing more than $5 billion debt to Russian natural gas supplier Gazprom, largely the result of unreimbursed natural gas consumption in the separatist Transnistria region. In breakaway region of Transnistria. Moldova and Romania inaugurated the Ungheni-Iasi natural gas interconnector project in August 2013, work began on a new 2014. The 43-kilometer pipeline between Moldova and Romania that may eventually break Russia's monopoly on Moldova's Romania, allows for both the import and export of natural gas. Several technical and regulatory delays kept gas supplies. from flowing into Moldova until March 2015. Romanian gas exports to Moldova are largely symbolic. Moldova hopes to build a pipeline connecting Ungheni to Chisinau, bringing the gas to Moldovan population centers.
The government's stated goal of EU integration has resulted in some market-oriented progress. Moldova experienced better than expected economic growth in 2014 due to increased agriculture production, to economic policies adopted by the Moldovan government since 2009, and to the receipt of EU trade preferences. Moldova signed an Association Agreement and a Deep and Comprehensive Free Trade Agreement with the EU during fall 2014, connecting Moldovan products to the world’s largest market. Still, a $1 billion asset-stripping heist of Moldovan banks in late 2014 delivered a significant shock to the economy in 2015; a subsequent bank bailout increased inflationary pressures and contributed to the depreciation of the leu. Moldova’s growth has also been hampered by high prices for Russian natural gas, endemic corruption and a Russian import ban on Moldovan wine, increased foreign scrutiny of Moldovan agricultural products, and by Moldova’s large external debt. agricultural products.
Over the longer term, Moldova's economy remains vulnerable to corruption, political uncertainty, weak administrative capacity, vested bureaucratic interests, corruption, higher fuel prices, Russian political and economic pressure, and the illegal separatist regime unresolved separatism in Moldova's Transnistria region.

Despite recent progress, Moldova remains one of the poorest countries in Europe. With a moderate climate and productive farmland, Moldova's economy relies heavily on its agriculture sector, featuring fruits, vegetables, wine, and tobacco. Moldova also depends on annual remittances of about $1.12 billion from the roughly one million Moldovans working in Europe, Russia, and other former Soviet Bloc countries.
With few natural energy resources, Moldova imports almost all of its energy supplies from Russia and Ukraine. Moldova's dependence on Russian energy is underscored by a more than $5 billion debt to Russian natural gas supplier Gazprom, largely the result of unreimbursed natural gas consumption in the breakaway region of Transnistria. Moldova and Romania inaugurated the Ungheni-Iasi natural gas interconnector project in August 2014. The 43-kilometer pipeline between Moldova and Romania, allows for both the import and export of natural gas. Several technical and regulatory delays kept gas from flowing into Moldova until March 2015. Romanian gas exports to Moldova are largely symbolic. Moldova hopes to build a pipeline connecting Ungheni to Chisinau, bringing the gas to Moldovan population centers.
The government's stated goal of EU integration has resulted in some market-oriented progress. Moldova experienced better than expected economic growth in 2014 due to increased agriculture production, to economic policies adopted by the Moldovan government since 2009, and to the receipt of EU trade preferences. During fall 2014, Moldova signed an Association Agreement and a Deep and Comprehensive Free Trade Agreement with the EU during fall 2014, EU, connecting Moldovan products to the world’s largest market. Still, a $1 billion asset-stripping heist of Moldovan banks in late 2014 delivered a significant shock to the economy in 2015; a subsequent bank bailout increased inflationary pressures and contributed to the depreciation of the leu. Moldova’s growth has also been hampered by endemic corruption and a Russian import ban on Moldova’s agricultural products. The government’s push to restore stability and implement meaningful reform led to the approval of a $179 million three-year IMF program focused on improving the banking and fiscal environments.
Over the longer term, Moldova's economy remains vulnerable to corruption, political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices, Russian political and economic pressure, and unresolved separatism in Moldova's Transnistria region.

Despite recent progress, Moldova remains one of the poorest countries in Europe. With a moderate climate and productive farmland, Moldova's economy relies heavily on its agriculture sector, featuring fruits, vegetables, wine, wheat, and tobacco. Moldova also depends on annual remittances of about $1.12 $1.2 billion - almost 15% of GDP - from the roughly one million Moldovans working in Europe, Israel, Russia, and other former Soviet Bloc countries.
elsewhere. With few natural energy resources, Moldova imports almost all of its energy supplies from Russia and Ukraine. Moldova's dependence on Russian energy is underscored by a more than $5 $6 billion debt to Russian natural gas supplier Gazprom, largely the result of unreimbursed natural gas consumption in the breakaway region of Transnistria. Moldova and Romania inaugurated the Ungheni-Iasi natural gas interconnector project in August 2014. The 43-kilometer pipeline between Moldova and Romania, allows for both the import and export of natural gas. Several technical and regulatory delays kept gas from flowing into Moldova until March 2015. Romanian gas exports to Moldova are largely symbolic. In 2018, Moldova hopes awarded a tender to build Romanian Transgaz to construct a pipeline connecting Ungheni to Chisinau, bringing the gas to Moldovan population centers.
Moldova also seeks to connect with the European power grid by 2022. The government's stated goal of EU integration has resulted in some market-oriented progress. Moldova experienced better than expected economic growth in 2014 due to increased agriculture production, to economic policies adopted 2017, largely driven by the Moldovan government since 2009, increased consumption, increased revenue from agricultural exports, and to the receipt of EU trade preferences. improved tax collection. During fall 2014, Moldova signed an Association Agreement and a Deep and Comprehensive Free Trade Agreement with the EU, EU (AA/DCFTA), connecting Moldovan products to the world’s largest market. Still, The EU AA/DCFTA has contributed to significant growth in Moldova’s exports to the EU. In 2017, the EU purchased over 65% of Moldova’s exports, a major change from 20 years previously when the Commonwealth of Independent States (CIS) received over 69% of Moldova’s exports. A $1 billion asset-stripping heist of Moldovan banks in late 2014 delivered a significant shock to the economy in 2015; a the subsequent bank bailout increased inflationary pressures and contributed to the depreciation of the leu. leu and a minor recession. Moldova’s growth has also been hampered by endemic corruption corruption, which limits business growth and a deters foreign investment, and Russian import ban restrictions on imports of Moldova’s agricultural products. The government’s push to restore stability and implement meaningful reform led to the approval in 2016 of a $179 million three-year IMF program focused on improving the banking and fiscal environments.
environments, along with additional assistance programs from the EU, World Bank, and Romania. Moldova received two IMF tranches in 2017, totaling over $42.5 million. Over the longer term, Moldova's economy remains vulnerable to corruption, political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices, energy import dependence, Russian political and economic pressure, heavy dependence on agricultural exports, and unresolved separatism in Moldova's Transnistria region.

Despite recent progress, Moldova remains one of the poorest countries in Europe. With a moderate climate and productive farmland, Moldova's economy relies heavily on its agriculture sector, featuring fruits, vegetables, wine, wheat, and tobacco. Moldova also depends on annual remittances of about $1.2 billion - almost 15% of GDP - from the roughly one million Moldovans working in Europe, Israel, Russia, and elsewhere.
With few natural energy resources, Moldova imports almost all of its energy supplies from Russia and Ukraine. Moldova's dependence on Russian energy is underscored by a more than $6 billion debt to Russian natural gas supplier Gazprom, largely the result of unreimbursed natural gas consumption in the breakaway region of Transnistria. Moldova and Romania inaugurated the Ungheni-Iasi natural gas interconnector project in August 2014. The 43-kilometer pipeline between Moldova and Romania, allows for both the import and export of natural gas. Several technical and regulatory delays kept gas from flowing into Moldova until March 2015. Romanian gas exports to Moldova are largely symbolic. In 2018, Moldova awarded a tender to Romanian Transgaz to construct a pipeline connecting Ungheni to Chisinau, bringing the gas to Moldovan population centers. Moldova also seeks to connect with the European power grid by 2022.
The government's stated goal of EU integration has resulted in some market-oriented progress. Moldova experienced better than expected economic growth in 2017, largely driven by increased consumption, increased revenue from agricultural exports, and improved tax collection. During fall 2014, Moldova signed an Association Agreement and a Deep and Comprehensive Free Trade Agreement with the EU (AA/DCFTA), connecting Moldovan products to the world’s largest market. The EU AA/DCFTA has contributed to significant growth in Moldova’s exports to the EU. In 2017, the EU purchased over 65% of Moldova’s exports, a major change from 20 years previously when the Commonwealth of Independent States (CIS) received over 69% of Moldova’s exports. A $1 billion asset-stripping heist of Moldovan banks in late 2014 delivered a significant shock to the economy in 2015; the subsequent bank bailout increased inflationary pressures and contributed to the depreciation of the leu and a minor recession. Moldova’s growth has also been hampered by endemic corruption, which limits business growth and deters foreign investment, and Russian restrictions on imports of Moldova’s agricultural products. The government’s push to restore stability and implement meaningful reform led to the approval in 2016 of a $179 million three-year IMF program focused on improving the banking and fiscal environments, along with additional assistance programs from the EU, World Bank, and Romania. Moldova received two IMF tranches in 2017, totaling over $42.5 million.
Over the longer term, Moldova's economy remains vulnerable to corruption, political uncertainty, weak administrative capacity, vested bureaucratic interests, energy import dependence, Russian political and economic pressure, heavy dependence on agricultural exports, and unresolved separatism in Moldova's Transnistria region.