Moldavian Economy Overcame Bottom of Crisis, Vice PM
OREANDA-NEWS. June 23, 2010. This was announced by the Vice-Premier, the Minister of Economy of the republic of Moldova Valeriu Lazar, speaking on the opening of Investment week Moldova Business Week 2010, noting that “the republic came out of crisis and the tendency of economic growth is laid down”.
He emphasized that it is indicated by the increase of GDP index by 4.7% in the Ist quarter of 2010, and also by the increase of export that allows the authorities to be temperate optimists and revise their former macroeconomic prognoses in increase way. Valeriu Lazar stressed the importance of keeping this trend and renunciation of use of the old model of economic development. He noted that Moldavian economy still depends on foreign factors, on the development of situations in trade-partner countries.
Thus the main object of Moldavian authorities is to change the structure of their economy, to use the other model of economic growth in order to move from economy mostly based on the consumption due to the growth of migrant workers’ remittances and the increase of contributions to the budget of indirect import taxes to economy, based on the production of competitive products and their export. The head of the Ministry of Economy stressed that world finance crisis started in 2009 didn’t affect the Moldavian economy, but only revealed its systematic problems and defects in economy structure.
According to Valeriu Lazar, thus in the last year the “engines” of Moldavian economic growth have stopped working – the flow of direct foreign investment reduced considerably because of the world crisis that concurred with political instability in Moldova, and also the remittances of migrant workers that earlier made up 30% of country’s GDP reduced considerably. It led to the decrease of consumption, of dues to the budget in the form of indirect import taxes that provided “the illusion of economic growth”, of investment to the basic capital, to the stopping of building projects. In GDP structure decreased the share of industrial sector.
As Valeriu Lazar has noted, to eliminate the defects from Moldavian economy it is necessary to pay special attention to the development of industry that is more productively effective than the agriculture, to keep balanced external trade with EU countries, as well as with CIS countries, because Moldova still is in need of import of energy carriers, equipment. It is necessary to accentuate the development of the real sector of economy - production for further exporting, for which new foreign investment is highly important.
The head of the Ministry of Economy emphasized that Moldavian authorities will continue to take measures on the improvement of investment climate and development of infrastructure in the country in order to facilitate the activity of foreign investors in Moldova.
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