Moldova’s economy shows signs of recovery, departing first deputy prime minister

The economy of Moldova was seriously affected by the world financial crisis but seems to have overcome the worst moment. Certain sectors started to recover since April, especially during the last several months, outgoing first deputy prime minister Igor Dodon said, quoted by Info-Prim Neo. At Wednesday’s meeting of the Government, Dodon said that sales in retail outlets in July rose by 7.9% from a month before. The industrial production volume in May grew by 9.4% on April, while in June by 10.2% on May. Moreover, exports during the first 20 days of August increased by 32% compared with the same period last year. The average net daily sums transferred from abroad by private individuals also rose. Over the first 19 days of August they totaled US$5 million, up 2% or 0.1 million from July and 35% or US$1.4 million from January, Igor Dodon said. He stressed that despite these positive trends in economy, the situation of the budget revenues remains alarming, while the budget deficit is increasing (over 2.5 billion lei). “It is known that after a decline, the collections into the budget can begin to increase only after 3-4 months of the first recovery signs. Presently, there are no arrears as regards the foreign payments and the social payments. But the state should immediately provide support to the real sector of the economy – refund the VAT to economic entities, give subsidies in agriculture, finance capital investments from the state budget in order to raise demand for building materials,” Dodon said. He also said that the new government should be a professional one that will be supported by the Parliament. Other important anti-crisis measures concern the modification of the legislation, especially on the fiscal policy, and the amendment of the budget. In parallel, there should be resumed the talks with the IMF and other development partners so as to identify resources to cover the budget deficit. “I would like to mention that the cooperation with the East is not a danger to the cooperation with the West and this fact was confirmed at different negotiations by our partners from the West and the East. The present government expressed its ideas on this and will submit them to the new government for consideration,” the departing first deputy prime minister said.

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