OREANDA-NEWS. May 17, 2010. The final statement of IMF mission indicates that in recent years, the growth of the Moldovan economy was ensured mainly by consumption, fueled by the remittances from abroad, which in 2008 exceeded 10% of GDP.

Though for some time this model will play the main role in economy, it is coming to an end, as the share of Moldovan labor force working abroad already accounts for 40%, and the connections of migrants with the homeland gradually weaken. As the experience of other countries in the region shows, the increasing of Moldova’s share at the large markets of major countries-trading partners in East and West can make serious and sustained promotion of economic growth. For this reason, the long-awaited structural reforms have played a crucial role in enhancing economic growth based on exports, job creation and in addressing the problems of competitiveness.

The Moldovan authorities have already removed some exports and imports restrictions, facilitated licensing procedures and customs controls, but much remains to be done. Thus, the improving of creditor rights’ protection will facilitate access to loans. According to IMF experts, it is necessary to maintain price competitiveness, avoiding use of policy measures that could lead to overvalued exchange rate, and maintaining compliance with the growth of real wages to productivity growth.

The IMF believes that the revision of labor laws to increase flexibility in hiring and firing, as well as greater flexibility in determining the amount of wages will help to create new jobs. The IMF experts have concluded that in general, prospects for economic growth in Moldova depend on the country’s ability to maintain macroeconomic stability and ensure an increase in presence at the foreign markets.