MEGA - Moldova Economic Growth Analysis № 6 / 2012
MEGA - Moldova Economic Growth Analysis № 6 / 2012

Author(s): Ana Popa, Adrian Lupuşor, Valeriu Prohniţchi
Subject(s): National Economy, Economic policy
Published by: EXPERT-GRUP Centrul Analitic Independent
Summary/Abstract: The repetition of trends similar to those that marked the 2008-2009 crisis highlight the vulnerability of the Moldovan economy to external shocks and the country's inability to address its internal problems. We cannot expect an open economy to be immune to external shocks, but at the same time, in a healthy economy, the dependence of domestic demand on the external situation should be more moderate, which could save the economy from a recession. In the case of Moldova, narrow interventions in the system have proven to be ineffective in the medium and long term. Thus, we see the need for consistent reforms and radical changes to the institutional framework. Economic activity cannot expand in an unhealthy investment environment. Moldova has failed to provide this environment, due to the persistence of unfair competition, trade barriers and high administrative burden. However, a more intense economic activity generates opportunities and higher incomes within the country. Thus, the economy becomes less dependent on external factors. These are essential elements to ensure that the economy not only grows, but also develops. At the same time, it is important that national statistical data ensure a consistent format for the presentation of quarterly GDP and sectoral output. Changes are also needed to better reflect the evolution of economic sectors. Inter alia, the indicators in the telecommunications and transport sectors should be presented in a disaggregated form, since in recent years these sectors have followed completely different trends.

• Details
• Contents