Economic year 2010 in independent experts' view: stabilization and insignificant growth

The year 2010 will see economic stabilization, but a growth of only 1% in the best case, Valeriu Prohnitski, executive director of the independent analytical center Expert-Grup, said during the conference “Lessons of Economic Year 2009: Projections for Next Year. The conference involving independent analysts, representatives of the government, other public authorities and of the business sector was organized by Expert-Grup as part of the project “Promoting Efficient and Transparent Economic Policies in Moldova” which is financed by the the Black Sea Trust, Info-Prim Neo reports. According to Prohnitski, a number of things must be done, but not under an alert regime. The major problem in the agricultural sector is the instability of prices that contribute to the instability of harvests and scare the agricultural producers, endangering the country's food security. He said that next year the government should apply more serious and clear standards for public company managers, many of whom were influenced by the political situation and allowed the previous government to involve them in the electoral campaigns in a way or another, instead of taking steps to alleviate the consequences of the crisis and make the companies profitable. “If these companies, mainly those working in the energy sector, are subject to a serious audit, we will find out what their administrative costs are and how fair the financial resources are used. The consumers' reaction to the rise in charges would be then different,” he said. A key objective for 2010 is the improvement of the business and investment environment as the foreign direct investment in Moldova's economy in 2009 decreased owing to the political instability as well. Expert-Grup considers that Moldova is not the hardest-hit by the crisis even if the GDP decreased by 7.8% in the first half of this year. The real impact of the crisis is yet much higher if taking into account the growth that could be reached. Owing to the crisis, the real decline in the GDP is 15.1%. The reduction in industrial output, the termination of certain contracts, the bankruptcy and liquidation of many companies had a serious impact on the GDP. According to Expert-Grup, Moldova will not be able to react immediately to the economic recoveries expected in the countries that are its trade partners in 2010. The Government should encourage consumption, including by eliminating the anti-competitive practices that maintain the prices at an artificial level, and increase the country's investment attractiveness.