WB Observers Moldovan Economy
OREANDA-NEWS. June 18, 2012. High demand for external backing makes Moldova vulnerable to global economy changes, - the World Bank. This was concluded in the research “Global Economic Prospects” done by WB experts and published in June, 2012. Experts call developing states to strengthen national economies, raise efficiency of reforms and invest in infrastructures instead of daily reacting to global economy changes.
According to WB projects, GDP growth in Moldova will slow down in 2012 to 3,0%, being 3,8% and 3,7% in 2013 and 2014 respectively. To some degree it is explained by unfavorable weather conditions of 2012 and a risk of poor yield. A rising financial instability in developed countries contributed to a slowdown of external demand, which, in its turn, led to a drastic slowdown of rates of industrial production and export in the second half of the year. Besides, developing states of Europe saw an outflow of capital and a decline in stock prices. At the same time, amounts of remittances of labor migrants to Moldova will increase in 2012 thanks to a high oil price.
This factor is a key one, since incomes from sales of black gold allow developing infrastructure in oil-extracting states and create favorable conditions of labor migrants. Remittances continue acting a great part in the structure of economies of the regions and contribute over 20% to GDPs of Moldova, Kyrgyzstan and Tajikistan, experts remind. They grew 12,6% in 2011 despite constant economic problems in West Europe where 40% of all remittances come from.
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