Drought threatens to cut economic growth, expert

This summer's bad weather, in particular drought, won't allow Moldova to reach the expected target of 3%. Economist Iurie Gotisan has told Info-Prim Neo that lower crop and livestock production could lead to higher prices on the agricultural market, which will ultimately affect economic growth. According to Gotisan, this state of affairs could by remedied by a Government intervention in the form of a policy which would regulate the rise in prices in this sector. However, this could be interpreted as a state intervention running afoul of market economy rules, especially since the farmers are expected to try everything to recover part of their expenses. The expert also noted that the drought hasn't affected all the crops that badly, and some farmers' statements are exaggerations, as the recent rains are expected to alleviate the situation. Until recently, the most optimistic economic growth forecast for 2012 was 4.5%.