The economic recovery after the declines witnessed last year will not take place as smoothly as it was hoped, experts of the Institute for Development and Social Initiative “Viitorul” say in a study presented on October 4, IPN reports.

“Viitorul” programs director Viorel Chivriga said this is due to the negative events that happened in 2014-2015, especially in the financial banking sector that had an impact practically on all the spheres. The limited access of the Moldovan products to foreign markets, mainly owing to the low demand on the CIS market, is another problem. Also, the opportunities provided by the DCFTA to Moldova are insufficiently used.

Industrial production declined even in the sectors where progress has been made in the last few years, like the electrical harnesses industry. In agriculture, many products are noncompetitive and not only on foreign markets. The rise in stores is a problem that became more evident in time and this is influenced by the situation in Ukraine.

Experts forecast an inflation of 1.7%, an exchange rate of 20 lei per US dollar and of 22.2 lei per euro. The agricultural production is expected to grow by 7%, while retail trade by 2.5%. Exports will yet shrink by 9%, while imports by 5%.

The study recommends the Government to step up the measures aimed at modernizing the economy, improving the business climate and eliminating the barriers to entrepreneurial activities.