Overview: Moldova has pushed ahead boldly on economic reform since gaining its independence from the Soviet Union in 1991. It introduced a convertible currency - the leu - in late 1993 that has remained stable against the dollar, removed price controls on most products, eliminated licenses and quotas on most imports and exports, and freed interest rates. In 1994, Moldova aims to privatize at least one-third of state enterprises, lower inflation to 1% per month, and reduce the budget deficit to 3.5% of GDP. Moldova enjoys a favorable climate and good farmland but has no major mineral deposits. As a result, Moldova's economy is primarily based on agriculture, featuring fruits, vegetables, wine, and tobacco. Moldova, however, must import all of its supplies of oil, coal, and natural gas, and energy shortages have contributed to sharp production declines since the break-up of the Soviet Union. Activities by separatist groups in the Dniester region have held back economic development in that area. Foreign economic assistance has been a tangible plus for Moldova, whereas direct foreign investment has been lacking.

National product: GDP - purchasing power equivalent - $16.3 billion (1993 estimate from the UN International Comparison Program, as extended to 1991 and published in the World Bank's World Development Report 1993; and as extrapolated to 1993 using official Moldovan statistics, which are very uncertain because of major economic changes since 1990)

National product real growth rate: -4% (1993 est.)

National product per capita: $3,650 (1993 est.)

Inflation rate (consumer prices): 30% per month (1993)

Unemployment rate: less than 1% (includes only officially registered unemployed; large numbers of underemployed workers)

Budget:
revenues: $NA
expenditures: $NA, including capital expenditures of $NA
note: budget deficit for 1993 approximately 6% of GDP

Exports: $108 million to outside the FSU countries (January-September 1993); over 70% of exports go to FSU countries
commodities: foodstuffs, wine, tobacco, textiles and footwear, machinery, chemicals (1991)
partners: Russia, Kazakhstan, Ukraine, Romania, Germany

Imports: $145 million from outside the FSU countries (January-September 1993); over 70% of imports are from FSU countries
commodities: oil, gas, coal, steel machinery, foodstuffs, automobiles, and other consumer durables
partners: Russia, Ukraine, Uzbekistan, Romania, Germany

External debt: $325 million (end of 1993)

Industrial production: growth rate -10% (1993)

Electricity:
capacity: 3,115,000 kW
production: 11.1 billion kWh
consumption per capita: 2,491 kWh (1992)

Industries: key products are canned food, agricultural machinery, foundry equipment, refrigerators and freezers, washing machines, hosiery, refined sugar, vegetable oil, shoes, textiles

Agriculture: Moldova's principal economic activity; products are vegetables, fruits, wine, grain, sugar beets, sunflower seed, meat, milk, tobacco

Illicit drugs: illicit cultivator of opium poppy and cannabis; mostly for CIS consumption; transshipment point for illicit drugs to Western Europe

Economic aid:
recipient: Joint EC-US loan (1993), $127 million; IMF STF credit (1993), $64 million; IMF stand-by loan (1993), $72 million; US commitments (1992-93), $61 million in humanitarian aid, $11 million in technical assistance; World Bank loan (1993), $60 million; Russia (1993), 50 billion ruble credit; Romania (1993), 20 billion lei credit

Currency: the leu (plural lei) was introduced in late 1993
Exchange rates: NA

Fiscal year: calendar year

NOTE: The information regarding Moldova on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Moldova Economy 1995 information contained here. All suggestions for corrections of any errors about Moldova Economy 1995 should be addressed to the CIA.