R. of Moldova wasn’t able to eliminate many of specific misbalances and risks from national economy

The R. of Moldova benefited last year from a relatively stable economic growth, which wasn’t able though to eliminate many of the specific misbalances and risks from the national economy, the National Human Development Report 2006 mentions. Thus, collected taxes for producing and import in 2000-2005 grew much more rapidly than the gross value added (131% to 33%), although, in the GDP structure it is the dynamic of gross value added which constitutes the main indicator of real sector development. In these conditions about 1/3 from the GDP growth in the respective period has been determined by taxes collected and only 2/3 by the expansion of the real sector. As a consequence, the quote of value added in the GDP went down from 89.3 in 2000 to 83.6% in 2005. The evolution of the gross value added on different sectors was extremely instable, especially in agriculture where the greatest risks are manifested, compromising the rural economic development. The report attests that agriculture, employing 41% of labor force, contributes by only 22 % to the value added for the whole economy. It is a level similar to telecommunications or transports, which only employ 6% from the labor force. Because of the low income in agriculture, it becomes more difficult to counter rural poverty. Still, agriculture represents the single option for surviving for those 650,000 poor citizens who live in the rural area. As it was estimated, a share of more than 80% of the internal demand growth is represented by the demand for imported goods. According to the National Human Development Report, in order for the real sector to be able to face the increasing internal and external demand, there is need for investments increase in modernizing existing productive capacities and installing new capacities. Even though it reached the level of 22.3% from the GDP in 2005, the investment rate should continur to grow in order to attain the optimal level – estimated at 26-27%, te authors of the project attest, cited by Info-Prim Neo.