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POLITICAL AND ECONOMIC SITUATION IN MOLDOVA AFFECTED ITS BUSINESS ENVIRONMENT

23 march, 2016
POLITICAL AND ECONOMIC SITUATION IN MOLDOVA AFFECTED ITS BUSINESS ENVIRONMENT The unstable political, economic and social situation in Moldova has negatively affected the country’s business community in 4Q2015, showed the results of social barometer, presented by Chairman of the Chamber of Commerce and Industry France-Moldavie (CCI) Emmanuel Skoulios at the Tuesday’s news conference at Infotag.

 

According to him, political and social discontent, which preceded the formation of a new Government at the beginning of the year, concerns about macroeconomic and financial situation in Moldova, expectation of signing the agreement with IMF and uncertainty about continuation of external assistance to the country have had a negative impact on the business barometer trend, which registered a decline in indexes.

 

The poll has been conducted on January 18 – February 5 among 562 local residents and foreign companies, which are acting in Moldova. The registered decline has cut across all the fields of activity; the highest decline is in financial, banking and insurance sector, despite the growth of turnover, which happened due to three banks’ liquidation, Emmanuel Skoulios said.

 

He also said that trends in local and foreign companies are almost the same. Despite optimistic expectations about the development perspectives, the rate has sharply fallen. Companies showed caution in their forecasts for the next trimester, while the agricultural sector and the food industry sector are pessimistic.

 

In 4Q2015 we got results, which show worsening of the situation in business community. At the same time, the barometer data say that investments in 2015 are the highest since 2011. The idea is that investors plan their investments in advance and the money they put up this year was planned to be invested back in 2013-2014. This means that if 2015 became unfavorable, investments may fall in 2016, said Chairman of the Moldovan-German Business Association Wolfgang Lerke.

 

According to him, investors are first of all looking on the political, financial stability and the general investment climate.

 

“We have already started to count how many governments, prime ministers, economy and finance ministers changed over the last several years. The barometer is designed both for entrepreneurs, investors and for the Government, which should create favorable conditions for attracting investors”, Lerke said.

 

Magenta Consulting Director General Dumitru Slonovschi said that the data were collected during personal meetings with representatives of companies, who told about their point of view on the situation, results of the last quarter and plans for future.

 

“Negative results were expectable, but the decline is not as big as we imagined, given the beginning of the year and turbulence in the country. We added to the barometer new filters, now we can see the origin of investments, the type of activities and the sector”, he said.

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