MEGA - Moldova Economic Growth Analysis № 9 / 2013
MEGA - Moldova Economic Growth Analysis № 9 / 2013

Author(s): Adrian Lupușor, Alexandru Fală, Denis Cenușă, Victoria Vasilescu
Subject(s): National Economy, Economic policy
Published by: EXPERT-GRUP Centrul Analitic Independent
Summary/Abstract: Moldova must continue reforms in the direction of the vector of European integration. Therefore, it is important that, before the Eastern Partnership Summit in Vilnius (November 2013), an agreement is reached on the content of the future Deep and Comprehensive Free Trade Area between Moldova and the EU, and finally , the signing of this agreement in 2014. In addition, an optimal and feasible solution must be found for the involvement of Transnistria in this process. Estimates suggest a net positive effect for Moldova as a result of signing this agreement, which could boost exports by 10%-15% and GDP by around 5%-6%. But this implies short-term costs, because many non-performing enterprises, especially in the agri-food sector, currently protected by relatively high customs tariffs, will not be able to withstand the shock of competitiveness and could end up bankrupt. In order to minimize these costs and maximize the benefits, it is essential to capitalize on the European funds available to implement the ALSAC requirements and, at the same time, to strengthen the competitiveness of the Moldovan economy, by improving the business climate and attracting more FDI.

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