The Economy Ministry updated the economic growth forecast for 2012, reducing it from 3% to 1%. Deputy Prime Minister and Minister of Economy Valeriu Lazar said that such a move was determined by the last statistical data and the diminution by the international organizations of the economic growth rates at regional and world levels, Info-Prim Neo reports. ”The situation in the European countries has repercussions for the demand for Moldovan products and the exports decrease. This year’s drought affected the agricultural production much more seriously than we expected,” the minister said in an event held to present the quarterly publication of the Institute for Economy, Finances and Statistics “Trends in Moldova’s Economy”. Valeriu Lazar does not exclude that the forecast will be reviewed again when all the economic indicators for the first nine months of this year become available. The losses sustained by the agricultural producers may be greater than anticipated. Thus, the whole set of economic and budgetary-fiscal policies must be subordinated to the economic growth objective. The barriers to trade must be removed, the customs and fiscal regimes simplified, while the business climate improved. In the same event, analyst Alexandru Fala said he wasn’t sure that the economic growth this year will be 1% or lower, but the trend remains positive at least. “It will be a good result if we obtain even slight economic growth. The situation in other countries of the region is worse. As regards the economic growth next year, things will depend on the developments in the Euro zone countries that impact the economies of the CIS states as well,” he stated. He also said that the Government officials realize what reforms Moldova needs to implement in order to diminish the influence of the foreign factors on the economic development. The problem is that these reforms are not among the popular ones and imply large social costs. They cannot bring a plus to the image of the politicians. That’s why there will be implemented no radical reforms. The small steps that will be taken will not bring results immediately.