Share of private consumption fuelled by remittances in GDP continues to grow
The Gross Domestic Product (GDP) stood at about MDL 10.6 bln in Q1, increasing by 7.3% (in comparable prices) against the same period last year.
The increase was driven by the evolution of the service sector, the gross added value (GDV) of which has increased by 11%. The share of services in GDP has increased by 3.6 p.p. up to 67%. The increase of this field was especially generated by the increase in population’s purchasing power. The share of services in the GDP was the most significant – 7%.
The GDV in constructions registered the highest rates in the last few years – 50.1%, which generated the increase in the GDP by 1.5%, due to the intensification of the investment activity, determined both by increased living standards of the population and the economic growth on the whole.
In the wholesale and retail, the GDV has registered a significant increase by 13.3%, having a share of 2.1% in the GDP.
The ban on wine exports to Russia has affected the processing industry, which holds 73.4% in the industrial field. As a result, its gross added value went down by 14.9% against Q1 of 2006, and its share in GDP was negative (-2.1%).
The increase of the necessities of the economy in the development process and the growth of the purchasing power of the population, as well as the increase in price of several imported energy resources contributed to the significant growth of the imports and consequently of the net taxes on products and imports ( by 17.11%). As a result, the contribution of the net taxes on products and taxes in the increase of the GDP was significant – 2.9%, and the share of their GDP has increased by 1 p.p., compared with the first quarter of 2006, amounting to 17.9%.
The structure of the GDP by category was characterised by the 7.4 p.p. increase in the final consumption expenditure, mainly generated by the final consumption of households, which has increased by 8.1%. Its continuous increase was driven especially by the transfers of the local workers and remittances. This way, the share of the final consumption in the increase of the GDP constituted 9.1%.