Moldova’s economic growth becomes more qualitative, Expert – Grup says

The Gross Domestic Product in the first quarter of this year rose by 4.3%. This is the lowest growth rate after 2001. Independent experts consider yet that the Government should not worry very much. The fourth edition of the publication of analysis and forecasts “Economic Reality”, which was launched recently by the independent analytical center Expert – Grup, includes opinions on this topic. Expert-Grup director Valeriu Prohnitchi said that the first three months of the year are not decisive for the yearly economic growth and that the further developments depend greatly on the situation in agriculture. “The preliminary data on the resources and users of the GDP suggest that Moldova’s economy is undergoing major changes,” the quoted source said. The analyst stated that the economic growth becomes less dependent on consumption. The investments in fixed capital rose the most in this period, in contrast to other components of the GDP. The foreign direct investment grew by 64% compared with the corresponding period last year. The share of the gross value added in the GDO increased by 5.1%, while the share of the net taxes on product and import – by 0.9%. But this rise is insignificant if taking into account the fact that imports in the first quarter of 2008 decreased slightly compared with the previous periods, while the Moldovan leu has appreciated. But the tendency is obvious, Valeriu Prohnitchi said. The Center’s director considers that the Government should strengthen these improvements in the GDP by enhancing the capacity of assimilating national and foreign direct investment. The investments should be increased in such areas as: production of energy, including from alternative sources, rehabilitation of infrastructure, first of all of roads, extension of customs offices’ traffic capacities. These sectors could create serious problems in the future if not modernized. Among other recommendations are to step up the central public administration reform and the regulatory reform and to continue improving the business climate.

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