Moldova's economic growth to reach 4.1% in 2009, EBRD's forecast

Moldova's economic growth will reach 4.1% in 2009, the European Bank for Reconstruction and Development (EBRD) predicts. Growth in Central Europe and Central Asia is likely to fall sharply in 2009 in the face of global economic slowdown and financial market turbulence and it urged the countries where it invests to place a high priority on the stabilisation of their banking systems. A communique issued by the EBRD and quoted by Info-Prim Neo, reads that in its Transition Report 2008, which tracks the economic performance and progress on reforms across EBRD countries, it forecasts overall growth would fall to 6.3 per cent in 2008 from 7.5 per cent in 2007 and drop further to 3.0 per cent in 2009. In Moldova the economy is expected to grow 6.0 per cent in 2008 after growth of 3.0 per cent in 2007 and to grow 4.1 per cent in 2009. EBRD senior economist Anita Taci said: “The country has so far been largely unaffected by the global financial crisis, but the impact will lead to a reduction of growth next year. Improved access for Moldovan products on the EU markets and the resumption of wine exports to Russia have contributed to the country's robust growth in 2008, but going forward much will depend on how these export markets will perform.” Another senior economist with the EBRD, Erik Berglof, believes the rapid slowdown would mitigate the threat of inflation, while stabilisation of banking systems would become the key priority for governments across the region. The EBRD sees growth in Central Europe and the Baltics (CEB) slowing to 4.3 per cent in 2008 from 6.3 per cent last year and easing further to 2.2 per cent in 2009. Growth in south-eastern Europe is seen rising to 6.5 per cent this year from 6.2 per cent in 2007 and then falling back to 3.1 per cent next year. Growth in the CIS and Mongolia is predicted to slow to 7.3 per cent this year from 8.5 per cent and to drop to 3.4 per cent in 2009. The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia.