Economy

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Moldova with 3.564 million inhabitants is located in Eastern Europe, bordered by Romania and Ukraine. Its location and skilled workforce make it an exceptional setting for trade between east and west. According to the latest data, 41.44% of the population lives in urban areas. Chisinau, its capital, has 786.3 thousand people and Balti, the second largest city, 148.2 thousand people.

In 2011 Gross Domestic Product (GDP) totaled MDL 82,174 million (EUR 5,302 million), an increase of 6.9% compared to 2009. As such, 2011 brought a marked recovery of the Moldovan economy, after the severe decline during 2009 as a result of the global economic crisis.

Household consumption and exports contributed to the economic growth of the country in 2011. The economy of Moldova is highly dependent of remittances, which are around 23% of GDP. The goods production in 2011 contributed to increasing the GDP with around 26%, while services contributed with around 59% (mainly transport, communication, wholesale, retail and construction). The agriculture production reached 12.3% of GDP, while industrial production reached 13.7%, both economic sectors contributing to GDP growth with around 1.6%.

The highest industrial production in 2011 was registered in the following economic sectors:

  • Food and beverage industry – 40.2%,
  • Thermal and electric energy – 13.2%,
  • Garment industry – 9.9%.

The export volume for the last 10 years increased 4 times, while imports increased 5.8 times. Moldova has a negative trade balance in 2011 (i.e. amounting – USD 2,970 million). The annual inflation rate in Moldova for 2011 constituted 7.8% and unemployment rate is of 6.7% with a medium term of 13 months of unemployment.

For more details see the Investing Guide Moldova 2012