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Moldova
 

Country
GDP: purchasing power parity. $10 billion (1998 est.) Inflation rate (consumer prices): 18.3% (1998 est.) Labor force: 1.7 million (1998) Industries: food processing, agricultural machinery, foundry equipment, refrigerators and freezers, washing machines, hosiery, sugar, vegetable oil, shoes, textiles Agriculture. products: vegetables, fruits, wine, grain, sugar beets, sunflower seed, tobacco; beef, milk Debt. external: more than $1.2 billion Currency: the Moldovan leu (MLD) (plural lei) was introduced in late 1993 Exchange rates: lei (MLD) per US$1 (end of period). 8.3226 (December 1998)

Moldova

Moldova 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. The Moldovan Government has recently been making progress on an ambitious economic reform agenda. As part of its reform efforts, Moldova introduced a stable convertible currency, freed all prices, stopped issuing preferential credits to state enterprises and backed steady land privatization, removed export controls, and freed interest rates. In 1998, the economic troubles of Russia, with whom Moldova conducts 55% of its trade, was a major cause of the 8.6% drop in GDP. In 1999, the IMF resumed payment on Moldova's Extended Fund Facility, which had been suspended since 1997. The IMF intends to grant $135 million in 1999. SOURCE: CIA FACTBOOK

Comment:

Due to Moldova's excellent climate and farmland, the economy depends heavily on agriculture - fruits, vegetables, wine and tobacco. Much of the countries oil, coal and natural gas is imported from Russia. Moldova's most attractive foreign investment sector is wine-making, both bottling and production. Australian and French vintners have both taken advantage of Moldova's excellent climate and soil as well as low labor cost to produce some of Europe's highest quality and cost effective wine. The Soviet Union era had a devastating effect on the industry so there is a need for modern equipment and marketing.