Prospects for Moldovan exports' growth quite dependent on domestic reforms - survey

Chisinau, 22 March /MOLDPRES/ - The prospects for the Moldovan exports’ growth are quite dependent on the reforms in the country, according to a survey on trade in Moldova, unveiled by the World Bank Group Office in Chisinau.   

“This study shows, in fact, how Moldova’s export prospects depend on reforms. The ceasing of obstacles at the border and diminishing the bureaucracy are much more important for the Moldovan exports than international agreements on trade,” World Bank Country Manager for Moldova Alexander Kremer has said.  

Experts found that the value of foreign trade had increased substantially, from 1.250 billion dollars in 2000 to 7.8 billion dollars in 2013. The diversification of markets and products “considerably contributed to the increase in export.” On the other hand, the foreign direct investments, that are crucial for stimulating exports’ competitiveness, dropped after 2007 and remained at a disappointing level of 3.11 per cent of the Gross Domestic Product (GDP) in 2013”.    

According to the survey, the probability is high for the structural reforms of the business climate to encourage investments and innovations stronger than the fiscal facilities. “The deepening of trade and integration of investments are very important for Moldova’s long-term development prospects. The Free Trade Agreement with EU is an unparalleled opportunity: rather given that it must give an impetus to the reforms in the country than for reasons that it provides better access to EU markets,” the study’s authors said.      

To improve the business climate, “the implementation of anticorruption initiatives is crucial for transparency and eventually for attracting investments and economic growth.” 

According to the study, the agriculture and agro-food sector is an important promoter of Moldova’s international commerce. At the same time, the agricultural sector of Moldova had a pretty unstable performance, as the growth was slow and extremely variable, mainly because of the sector’s vulnerability to climate conditions.  

(Reporter V. Bercu, editor A. Raileanu)