Moldovan Economy in 2005

In 2005 Moldovan economy boasted a positive evolution, while macroeconomic policies have been quite firm. The Government managed to implement a prudent fiscal policy in a quite complex macroeconomic environment. On the monetary front, the National Bank of Moldova preferred to preserve a conservative policy stance, while at the same time intervening massively on the foreign exchange market with purchase operations. The real sector followed a positive path, and according to our estimates, the GDP grew 8.5-9.0 percent. At the same time, quality and sustainability of this growth is quite problematic, particularly so because the growth has not been supported by structural and regulatory policies. Among others, the regulatory reform has produced an effect falling far from the one initially hoped for. The National Agency for Competition Protection has not been created, the state’s interference in the private companies continued, while several privatization episodes taking place in 2005 were really obscure.