Social-economic trends in 2007

Moldova’s agricultural sector in January-September 2007 saw a sudden decline. The agricultural production in all the categories of farmsteads totalled 9 bln lei in current prices, making up 79.1% of the production in the corresponding period of 2006, in comparable prices. The agricultural production decreased as a result of a 32.4% fall in vegetal production. According to the Ministry of Economy and Trade, the inflationist processes in the last months have intensified. The rate of inflation in January-November 2007 was 12.1%, or by 0.6 percentage points (p.p.) lower compared with same period of 2006. Inflation in the given period was greatly influenced by the rise in the purchase price of gas and electric power from Russia and Ukraine and by the unfavourable weather conditions. The Moldovan leu strengthened its positions against the US dollar and euro. The exchange rate of the national currency in eleven months has appreciated by 12.7% against the US dollar and by 2.3% against the euro in nominal terms. The deposits and credits increased significantly. The money supply M3 at the end of November 2007 came to 25.6 bln lei, a 38.1% increase compared with the corresponding period of 2006. The rise in the money supply M3 stemmed from the 1.5-fold rise in deposits in national currency, the 31.5% increase in deposits in foreign currency and the 27.2% increase in the volume of money in circulation. The credits released to the economy rose 1.5 times. The revenues to the national public budget in January-November 2007 totalled 19.5 bln lei, a 24% increase compared with January-November 2006. The expenditure was 19 bln lei or by 26.4% higher. The surplus was 480.6 mln lei. Imports exceeded exports 2.7 times. Exports over January-October 2007 rose by 30.7%, while imports by 37.5% compared with the corresponding period of 2006. The negative balance of trade increased by 41.8%, totalling 1.83 bln USD. Industrial output in the first eleven months of 2007 fell by 1.9% in comparable prices on January-November 2006, to 23.7 bln lei. Investments in fixed capital rose by 28.7%, up to 75 bln lei. Retail trade in shops and outlets increased by 9.9% compared with the corresponding period of 2006 to 15.1 bln lei. The volume of services provided to the population for payment also increased. The officially registered units provided services worth 8.6 bln lei, a 4.6% increase compared with January-November 2006. The monthly average nominal salary in the national economy in January-November 2007 was 2,014 lei or by 8.1% higher than in the corresponding period of 2006. The Gross Domestic Product in January-September 2007 totalled 40.3 bln lei, a 3.3% rise year on year. Unlike the previous years, the main source of economic growth was the investments.