The Gross Domestic Product in the Transnistrian region in 2016 is expected to decrease by 10-15% if the special trade regime with the EU is not maintained. According to an economic forecast, endorsed by the so-called executive of Transnistria, if the negative scenario does not come true, the region’s GDP will rise by 0.4% next year, IPN reports.

The Transnistrian press reported that the current fiscal regime favors importers to the detriment of exporters. For this reason, a fiscal reform is needed. Otherwise, when the trade preferences with the EU enjoyed by Transnistrian economic entities are abolished in 2016, the local industrial production will decline by 25-35%, as the exports will do.

According to the forecasts of Transnistrian officials in charge of economic development, the region’s GDP in 2015 will fall by 3.8%, the industrial output by over 12%, while retail trade by 13%.

When presenting the macroeconomic forecast, self-styled minister of economic development of Transnistria Inna Linic said that if the pessimistic forecast becomes reality, the diminution of the macroeconomic indicators will negatively affect the collection of budget revenues and the region’s administration will be unable to appropriately fulfill its obligations.