Moldovans continue to live from remittances and agriculture

Abroad transfers, wages and incomes resulting from agricultural activity are the main income sources of the population of the Republic of Moldova, which increased in the second trimester of 2006 by 7-8%, including 10% - in towns and 4% - in rural localities, the economic analyst Valeriu Prohnitchi says. According to the quoted source, the increase of incomes is due to the result of international methodologies and a half of the rate of this index was ensured by the increase of taxes. Thus, the economic growth is not qualitative, Prohnitchi says. At the same time, the quoted source states that a close analysis of the poverty phenomenon is not possible without official statistics. However, in the joint evaluation of the International Monetary Fund and World Bank over the Government’s report on implementing the EGPRSP (Economic Growth and Poverty Reduction Strategy Paper) is showed that in the first two trimesters of 2005 the level of poverty increased by 29% in comparison with the same period of 2004. It is the first time after 1999 when the poverty level increases together with the real increase of the Growth Domestic Product, Prohnitchi declares. The level of poverty in rural areas can be explained by the stagnation of economic growth in rural localities, where the agricultural production has increased by only 1% in 2005, the economic analyst says. According to Prohnitchi, sustainable reduction of poverty in Moldova can be achieved only if the economic growth and development of rural areas will be ensured.