EBRD reduces 2012 economic growth forecast for Moldova

The European Bank for Reconstruction and Development (EBRD) decreased the 2012 economic growth forecast for Moldova from 4% to 3.5%, Info-Prim Neo reports. The main reasons are the fall in Moldova’s exports following the lower demand from the partner countries and the reduced remittances coming from the Moldovans working abroad. The EBRD report “Crisis and Transition: The People’s Perspective” that was presented on Thursday evening includes also other reasons. Among them is the slowdown or even halt in production in some of the areas and the fact that the structural reforms in economy are postponed owing to the political instability. One of the report authors Alex Pivovarski said that Moldova should develop its business and investment climate by improving the regulations governing the entrepreneurial activities and liberalizing trade, stepping up social assistance reforms and increasing energy security. The economic growth forecast for 2012 in the 29 countries with economies in transition, monitored by the EBRD, is 3.2% on average, as against 4.5% in 2011.