MOLDOVA’S ECONOMIC RATES ARE OPTIMISTIC, BUT LIVING CONDITIONS DO NOT IMPROVE - IDIS

Statistics demonstrate positive dynamic in most branches of the Moldova’s national economy, maintains expert Victor Ursu of the Institute of Development and Social Initiatives (IDIS) “Viitorul”.

In his research, he pointed that the growth of domestic and external demand for Moldovan goods and services is registered, but it remains very dependent on the consumption and imports.

“As of the end of the first half-year, the consumption growth accounted for 3%, mostly due to households (+3.8%), which thus raised their share in the GDP by 3.3%”, the expert said.

According to him, the main factors that ensured such growth was the raising of the labor remuneration fund, the volume of remittances and the influence of shadow economy.

“One of the indices that prove that the Moldovan economy is stagnating is the crediting to businesses, which remains quite anemic: as of the end of August the balance of the provided credits fell 1% against the previous year, accounting for 38.2 billion lei”, Ursu said.

He does not see reasons for optimism in the field of unemployment, as the number of the employed in the national economy remained at the last-year level, while the number of the unemployed fell, which negatively affected the dynamic of the economically active population of the republic.

“Despite relatively positive figures, the republic’s economy is still facing the same problems: production does not grow, industry is in fact stagnating. The economy much depends on agriculture, which creates additional risks for producing goods in absence of sufficient inflow of investments”, the expert concluded.