OREANDA-NEWS. February 10, 2012. Unlike the previous years, when the economic growth was almost fully based on consumption, in 2011 Moldova witnessed the first signs of improvement of the economic growth, an economist of the IDIS Viitroul think tank, Ghorghe Costandachi, said in a survey entitled "Social-economic realities in Moldova: facts, suggestions, trends" unveiled.

The expert has said that Moldova made significant economic headway in 2011. The economic growth was due to an increase in exports, as well as to the growth of the shares of some sectors with higher value-added tax, such as the processing industry, as well as the car and equipment engineering.

Since Moldova is still very open and highly dependent on the monetary remittances from abroad, in 2012 the country will be affected by the Euro zone's economic downturn, which might undermine the positive trends recorded in 2011, Constandachi said.

The National Bank of Moldova is trying to foster the economic growth by repeatedly cutting the basic rates. "Yet, this is a superficial approach. Without genuine institutional reforms, these measures will not produce the expected result," the IDIS Viitorul think tank expert has said. He added that a serious economic problem is the slow-paced enforcement of reforms meant to create favourable conditions for the business environment.

"The authorities should further take actions to combat the practices of backdoor salaries and informal employment, as well as to reduce the shadow economy's sector. Only the removal of corruption and the enforcement of significant fines for employers and employees will put an end to these infringements," Constandachi said.