We see first signs of stabilization, but an economic growth is yet far, Expert–Grup

The last statistical data show that the economic decline decreased its pace, especially in the industrial sector, said Ana Popa, co-author of the publication “Economic Reality”. The number 9 of the journal was presented by the Independent Analytical Center on August 13, Info-Prim Neo reports. The exports of textiles and metallurgical products have increased. However, the production volume in the food industry continues to decrease owing to the low demand on the home market. The volume of retail trade and of services provided for the population has also declined. The transport sector is the most affected, but the exports have slightly grown, the expert said. The half-year results in the agricultural sector, where the forecasts were more optimistic at the start of the year, are below expectations. The unfavorable weather conditions this year determined an 11% decrease in the volume of the vegetal production. The grain harvest fell by 28%. The authorities are considering banning the export of grain. Yet, the wheat this year is of a higher quality. The food wheat made up 45% of the reaped volume. The food security is ensured so that a ban on exports will not be needed. Ana Popa said that the remittances are growing even if many Moldovan migrants lost their jobs abroad. Valeriu Prohnitchi, the executive director of Expert–Grup, said that there appear the first signs of stabilization, but an economic growth is yet far. “It will depend on how things develop on the Central-European markets, on the Russian market, on the measures that will be taken by the Government and on the structural and institutional reforms promoted by it,” Prohnitchi said. According to Expert–Grup, the central bank is the only authority that has had an appropriate behavior in the crisis situation. “The real sector will start to recover by itself. If lending resources are identified, the economy will recover faster. The budgetary sector, the public finances sector in general is the major concern,” Valeriu Prohnitchi said, adding: “A large budget deficit in 2009 is inevitable. Let’s hope it will not affect our talks with the IMF and will not impact the country’s credibility and capacity to take out new loans.”