Moldovan industrial production diminished because of bans on wine imports

The volume of industrial production registered, in March 2006, a decrease by 3.4% compared to the same month of the last year, and in the first quarter of the year – by 0.3%. This reduction was influenced, especially, by halting wine exports to the Russian Federation. The minister of economy and commerce, Valeriu Lazar, announced about this on Wednesday meeting of the government on Moldova’s social-economic evolution for the I quarter of the year. According to him, as result of halting wine exports to Russia, to which the deliveries represent about 80%, the production volume of wine enterprises reduced by 7.4% compared to the same period of the last year, influencing negatively by 1.3% the general quota of production in industry. The decreasing of the wine production also was determined by the ceasing of the activity of producers, related to very low temperatures of 25-30 degrees bellow zero, in the period from 20 to 27 January. The volume of wine production represented about 18% of the total volume of industrial production. At the same time, the reduction, by 32%, of tobacco production, in January-March 2006, diminished the general quota of industrial production by 1%. In the same period, the inflation rate was 4.8%, registering an increase by 0.8% comparing with the same period of 2005. The main source of increases in price was the tariff increase to gas, as well as of the prices to vegetables, especially to potatoes. Services tariffs increased by 11.6%, increase that also led to increasing of tariffs on gas, along with the increase of the price for natural gas from Russian Federation. As result, the share of services prices in increasing the general consumption price was 1.7%, of it 1.5% is for regulated administrative services, including 1.3% - gas tariffs. The exchange rate of the national currency, during the first 3 months, dropped by 1.4% compared to USD, from 12.83 lei, on 1 January, to 13 lei - on 31 March. Compared to euro, the Leu dropped by 3.3%. On the other hand, Valeriu Lazar mentioned that the social levels improved a little bit. The average monthly wage of an employee increased by 14.5%, compared to the same period of 2005, mounting to 1454,3 lei. The average monthly allowance also increased by 6.2% compared to 1 April 2005.