Economy of Moldova

Situated in the eastern part of Europe, Moldova is considered to be a poor country. Though the Moldova economy has developed over the years, still the country has only a few economic resources. The agricultural products form the basis of the Moldova economy. The country has a number of farmlands which produce different kinds of fruits, vegetables. Wine and tobacco are also produced in the country.

The economy of Moldova faces numerous troubles in its growth. Moldova's economy largely depended on the Russian energy. After the Russians, stopped supplying natural gas to Moldova, the country experienced a setback in the economic growth.

When the Moldova government was in good terms with Russians, the GDP increased to six percent and above from 2000 to 2005, thus enhancing the economy of Moldova. The banning of the Moldovan wine and various agricultural goods by the Russians resulted in the slow growth of the GDP in Moldova. The Russians also doubled up the price of the natural gas paid by the Moldova government. This decision of the Russians increased the troubles for the Moldovan government. The presence of a separate regime in the region of Transnistria poses a problem for the economy of Moldova.