Economy
Economy—overview: Moldova enjoys a favorable climate and good farmland but has no major mineral deposits. As a result, the economy depends heavily on agriculture, featuring fruits, vegetables, wine, and tobacco. Moldova must import all of its supplies of oil, coal, and natural gas, largely from Russia. Energy shortages contributed to sharp production declines after the breakup of the Soviet Union in 1991. The Moldovan Government has recently been making progress on an ambitious economic reform agenda. As part of its reform efforts, Moldova introduced a stable convertible currency, freed all prices, stopped issuing preferential credits to state enterprises and backed steady land privatization, removed export controls, and freed interest rates. In 1998, the economic troubles of Russia, with whom Moldova conducts 55% of its trade, was a major cause of the 8.6% drop in GDP. In 1999, the IMF resumed payment on Moldova's Extended Fund Facility, which had been suspended since 1997. The IMF intends to grant $135 million in 1999.
GDP: purchasing power parity—$10 billion (1998 est.)
GDP—real growth rate: -8.6% (1998 est.)
GDP—per capita: purchasing power parity?$2,200 (1998 est.)
GDP—composition by sector: agriculture: 30% industry: 29% services: 41% (1997)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: 2.7% highest 10%: 25.8% (1992)
Inflation rate (consumer prices): 18.3% (1998 est.)
Labor force: 1.7 million (1998)