Moldova up eight positions in world ranking of economic freedom

Chisinau, 5 February /MOLDPRES/- Moldova’s economic freedom score is 59.1, making its economy the 97th freest in the 2019 Index. Its overall score has increased by 0.7 point, with improvements in judicial effectiveness, government spending, and fiscal health outpacing a decline in labor freedom, according to report 2019 Index of Economic Freedom.

Over the past three years, Moldova has climbed 20 positions and improved its performance by almost two points.

Moldova is ranked 40th among 44 countries in the Europe region, and its overall score is below the regional and world averages. Moldova ranks in the top three countries in its category and is ahead of the Russian Federation, Namibia, China in the world ranking. Among the CIS countries, Belarus ranks 104th, Tajikistan - 122, Uzbekistan - 140. On the other hand, Georgia is 16th, Armenia - 47, Kazakhstan - 59, Azerbaijan - 60th. Neighboring countries, Romania and Ukraine – 42 and 147 respectively.

Blessed with a moderate climate and productive farmland, Moldova’s economy in theory should be more prosperous. The domestic political impasse caused in part by Russia undercuts structural reform and realization of the country’s potential. The government has tried to address weaknesses in the financial sector, but growth is hampered by endemic corruption and a Russian ban on imports of Moldova’s agricultural products. The economy remains vulnerable to weak administrative capacity, vested bureaucratic interests, higher fuel prices, Russian political and economic pressure, and unresolved separatism in the Transnistria region, the report Heritage Foundation and The Wall Street Journal said.

Moldova’s economy remains dependent on migrants’ remittances and the agricultural sector.

Moldova has registered higher marks than in the previous year on seven indicators out of 12 considered in the development of the top, including chapters "property rights", "legal efficiency", "business freedom", "payment of taxes" and others. In two positions, the Moldovan economy has stagnated, namely "freedom of investment" and "financial freedom".

At the same time, Moldova was appreciated at the level of the countries at the top of the ranking on "tax" indicator (92.0 points) and "payment of taxes" (85.4), a field in which the Moldovan economy is regarded as free.

Economic freedom is assessed in 12 areas, the score being given for the degree of freedom of business, trade, fiscal freedom, freedom from government intervention, monetary freedom, investment, financial, labor market, respect for property rights, absence of corruption. An economy is much freer and less state intervention, since the index is higher.

The top three places in the world ranking are Hong Kong, Singapore and New Zealand.