The Economic Activity of Moldova
The economy is primarily based on agriculture which includes produce such as tobacco, vegetables and wine. The country is famous for its wine and wine making industries with most of the wines earmarked for export. The country’s hospitable weather and rich earth contributed greatly to the vast harvest of grapes and vegetables. This made it possible for Moldova to supply many of its agricultural produce to the southeastern part of Europe.
The dissolution of the Soviet Union resulted in the decrease of its economy and being one of the poorest European countries based on its 2009 GDP. The country depends and gets most of its coal, natural gas and petroleum from Russia. It also supports the European Union’s energy program and is currently a partner country.
Shortly after independence, energy shortages forced the nation to institute economic reforms. These reforms include liberalization in currency exchange, interest rate, export controls and prices of goods and services, privatization of lands and withdrawal of financial support to government-owned businesses.
By the year 2000, the economy grew by more than 2% and by 2007 it went up as high as 6%. In spite of the reforms, the economy is sensitive to high energy costs, poor agricultural harvests and lack of investors.
After the 1998 financial crisis, its macroeconomics and finances remained stable and secure. Its market economy is operating smoothly because of the many reforms initiated by the government. However, the nation is still among lowest in Europe in terms of living standards and human development as well as income per capita.