Moldovan economy was surprisingly successful in 2011, study

The Moldovan economy was surprisingly successful last year. Unlike the previous years, when the economic growth was based almost exclusively on consumption, last year appeared the first signs that the quality of the growth is improving, shows a study made by Gheorghe Costandachi, expert of IDIS „Viitorul”, Info-Prim Neo reports. According to the economist, the quality of the economic growth improved owing to the significant rise in exports and the higher share of some sectors with higher value added such as the processing industry and car making. Gheorghe Costandachi said that in 2012 Moldova will be affected by the recession in the Eurozone given the dependence of the national economy on remittances from abroad. The expert also said that the National Bank of Moldova tries to stimulate the economic growth by gradually reducing the base rate. “This means treating the symptoms. Without authentic institutional reforms, these measures will not produce the expected result,” said the author of the study. According to Gheorghe Costandachi, a serious problem remains the quality of the services provided by public institutions and the very low pace at which the reforms aimed at creating favorable conditions for the business community are implemented. “The authorities should continue to make effort to combat the illegal payment of salaries and illegal employment. There should be imposed heavier fines on the employers and employees,” he stated. The study contains a series of forecasts for this year. A slowdown in the economic growth is expected in 2012 owing to the problems faced by the countries of the Eurozone and the decline in remittances. Internal consumption will grow at a moderate rate. The decreasing prices of fuels and consumer goods worldwide will lead to a lower inflation.