Moldova’s economy will not be able to realize its full potential in two years

The inflation rate goes down, while Moldova’s economy is recovering at a higher pace than expected, National Bank Governor Dorin Dragutan said in a news conference, quoted by Info-Prim Neo. According to the governor, the central bank analyzed the recent foreign environment indexes, the situation in Moldova and the inflationist process and updated the medium-term macroeconomic forecasts. “All the sectors of the national economy witnessed growth in 2010, except the construction sector. The economic recovery is due to the structural reforms implemented, the liberalization of trade, the monetary policy based on moderate adjustments and the improvement in the situation in the partner countries – the EU and Russia. Therefore, we increased the GDP growth forecast from 2.5% made in May to 3.4%. The growth in 2011 is projected to be 3.3%, not 3.6% as forecast earlier, while in 2012 the GDP would grow by 4.3%. However, we consider that Moldova’s economy will not realized its full potential during the next two years,” Dragutan said. As to inflation, the governor said it increased significantly over the first six months of the year, but is under strict control. “The National Bank decreased the price rise forecast for 2010from 10.8% to 8.2%, and increased the forecast of 5.95% for 2011 made in May to 7.5%. In 2012, the inflation rate would be 4.3%,” the governor stressed. The results of the next round of assessments will be made public on November 5.