Moldova’s economy shows signs of more evident reorientation to the EU market. Exports to the EU member states in the first five months of this year rose by over 22%, while to the Commonwealth of Independent States fell by almost 19%. As a result, 53.8% of Moldova’s exports went to the EU and only 31.88% to the CIS, as opposed to 44.8% and 39.9% respectively in the corresponding period last year. The data are presented by the Independent Analytical Center “Expert-Grup” in the 47th monthly publication “Economic Realities”, IPN reports.
“Expert-Grup” says the reorientation of exports is not only geographical, but also product-based. The export of about 65% of the categories of products sold by Moldova abroad in January – May increased. Thus, the losses caused by the 35% decline in the exports of alcoholic and nonalcoholic beverages, following the bans imposed by Russia, were offset by the substantial increases in the export of other products. For example, the exports of grains and preparations from grains in the period rose 3.1 times, of fodder for animals – 6.7 times, of fats and vegetal oils – 3.1 times, while of organic chemical products – 2.7 times.
Experts consider that the economic policies in the near future must support the reorientation trends in the Moldovan economy by compensating the exporters to Russia for the sustained losses in the short term. The industrial sectors that are orientated to the EU can be supported by passive policies (elimination of barriers and administrative constraints), but the sectors that suffer losses as a result of the bans imposed by Russia need to be supported by active intervention polices. Though certain problems related to the quality of the national products exported to Russian cannot be excluded, the given restrictions are mainly political in character. For this reason, the Government must assume a part of the responsibilities and identify direct measures to compensate the exporters for their losses at least during the first 1-2 years, until they find alternative export markets.
