Economy - overview:
Moldova remains a very poor country despite recent progress from
its small economic base. It 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. As part of an ambitious reform effort, Moldova introduced a
convertible currency, freed all prices, stopped issuing preferential
credits to state enterprises, backed steady land privatization,
removed export controls, and freed interest rates. The government
entered into agreements with the World Bank and the IMF to promote
growth and reduce poverty. The economy returned to positive growth,
of 2.1% in 2000, 6.1% in 2001, 7.2% in 2002, and 5.3% in 2003.
Further reforms will come slowly because of strong political forces
backing government controls. The economy remains vulnerable to
higher fuel prices, poor agricultural weather, and the skepticism of
foreign investors.
GDP:
purchasing power parity - $11.51 billion (2002 est.)
GDP - real growth rate:
6.5% (2002 est.)
GDP - per capita:
purchasing power parity - $2,600 (2002 est.)
GDP - composition by sector: agriculture: 28% industry: 23% services: 49% (2000)
Population below poverty line: 80% (2001 est.)
Household income or consumption by percentage share: lowest 10%: 2.2% highest 10%: 30.7% (1997)
Distribution of family income - Gini index:
40.6 (1997)
Inflation rate (consumer prices):
5.5% (2002 est.)
Labor force:
1.7 million (1998)