Moldova has highest level of inflation and one of poorest increase GDP among CIS countries

Moldova registered in January-August 2006 the highest level of inflation, but also one of the poorest growths of the Gross Domestic Product (GDP) among the CIS member countries. According to the Interstate Statistics Committee of CIS, inflation in Moldova constituted 11.9% compared with the similar period of the last year. Moldova is followed by Tajikistan, with a level of inflation of 10.4% and Russia is one the third place –9.9%. Ukraine reached the level of 8.2%. The average inflation percentage within CIS constituted 9% in the reported period of time. According to the same sources, Moldova registered in the same period the poorest GDP growth levels, of only 5%, being followed by Kyrgyzstan – 3.5%. The highest increase of GDP was reached by Azerbaijan (34.4%) and Armenia (11.3%). The Russian Federation registered an increase of GDP of 5.8% and Ukraine – 5.7%. This average index for CIS countries constituted 6% in January-August. Previously, the Government of the Republic of Moldova and the International Monetary Fund forecasted a GDP increase of 6-6.5% in 2006. However, due to the economical crisis, generated by the increase in price of the natural gas and the embargo applied by Russia to the Moldovan wine production, the macroeconomic forecasts for 2006 were revised. IMF reduced the growth forecast of GDP from 6% to 3% and the Government – from 6.5% to 4%.