Government expects 4.5% growth in 2011

In 2011 Moldova's Gross Domestic Product is expected to amount to 82.1 billion lei, meaning a 4.5% economic growth in real terms, according to the 2011 Budget Bill which was published on the Finance Ministry's website, Info-Prim Neo reports. The GDP will grow on higher industrial output (7.5%) and agricultural output (2%), and due to investment policy re-orientation toward performance programs, modernization of domestic companies, infrastructure and small-scale business development. Exports in 2011 will amount to 1.8 billion lei, up 14% on last year, and imports are expected to total 4,37 billion lei, by 13.5% more than in 2010. Revenues to the 2011 National Public Budget (NPB) are established to constitute 31.01 billion lei, by 3.46 billion lei, or 12.6% more than last year, representing 37.8% of the GDP. NPB spending will be 32.5 billion lei, by 3.3 billion lei more on 2010. NPB deficit will stand at 1.59 billion lei and will represent 1.9% of the GDP. The Government plans to compensate for the budget deficit through external borrowing on advantageous terms and through denationalization deals, expected to yield 280 million lei. The Government forecasts in 2011 an annual average consumption price index of 107.5%, and the exchange rate of the national currency will see a slow depreciation against the US dollar to an average of 12.4 lei. In 2010 Moldova saw an economic growth of 6.9%. The Moldovan Government was supposed to consider and adopt the Budget Bill at its meeting on Saturday, March 5, but it was postponed for unclear reasons. After Cabinet passage, the Bill is due to be considered in Parliament.

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