Moldovan officials agree with EBRD forecasts regarding the decrease of economic growth tempo in 2006

„We agree with the forecasts of the Europan Bank for Reconstruction and Development (EBRD) regarding the decrease of the economic growth tempo this year, only as tendency, but not as absolute values. This thing was noted as well by the International Monetary Fund (IMF), only they see the decrease level a little bit higher, but we are optimistic," the minister of Economics and Commerce, Valeriu Lazar, said. According to him, Ministry of Economics and Commerce (MEC) has presented already to Ministry of Finance the forecast for next 3 years. In 2006, it also is expected a slowly ness of the economic growth, but the growth level will decrease from 7.1% in 2005 to 6.5% and not 5.0-5.5%, as EBRD experts noted. The minister explains this trend through the fact that there are cyclic tempos in economy. In this sense, if lately the economy of Moldova had a higher increase, than it is expected a certain decrease of its growth speed. In the same time, according to him, slowing of the tempos is cause as well by the fact that agriculture has a great importance in the national economy, and last year this branch did not register positive result. „Important is that the economy will grow, an exaggerated growth is not a healthy thing as well,” Lazar mentioned. In minister’s opinion, the government „should not undertake anything” these are only forecasts. Methodologically, Lazar also said, the economic growth depends on the deficit of commercial balance and many other factors. On the other hand, the chairman of the National Confederation of Employers of Moldova (CNPM), Leonid Cerescu, said that in order to diminish the decreases it is necessary to liberalise the currency market, to simplify the customs procedures, to revise en details the legislative acts in order to exclude the excessive regulations and expensive ones. He considers that the decrease of the economic growth will be influenced by the increase of import prices to energy sources, which the economy of Moldova depends on. „The increase of prices to energy sources is unavoidable. But, in order to reduce the influence, it would be necessary to decrease the excise to import of these resources or their exemption of VAT. In the same time, it is imposed the reduction of licence taxes to businessmen who work in this area, and enterprises generating energy are exempted wholly of certain taxes in this sense. The state also has to intervene less with different regulations in exports, as important element for reduction of the commercial balance deficit,” Cerescu underlined. The datum point of structural reforms, where the EBRD mentioned that the lack of progress, has, in opinion of CNPM chairman, to axe on the principle of reducing to maximum of administrative expenses. „It is necessary to ensure a continuity of structural reforms. Moldova does not need such a great number of administrative structures, as at national level, as at local one. Their reduction, in parallel with increasing the responsibility and the competence of the left ones, will be an important step”. According to EBRD report, macro-economic performance of Moldova was a good one lately. Economy grew in real terms with 7.3% in 2004 and with 7.5% in 2005. But this economic growth is due to high level of abroad remittances, as well as quick expansions in the sector of services and the agricultural one. For this year, EBRD experts, forecast a decrease of the tempo of the economic growth in Moldova to the level of 5.0-5.5%, because of increase of energy resources and limiting of the access to traditional export markets.