Economy - overview:
Moldova remains one of the poorest countries in Europe despite recent progress from its small economic base. With its moderate climate and good farmland, Moldova's economy relies heavily on its agriculture sector, featuring fruits, vegetables, wine, and tobacco. With few natural energy resources, Moldova imports almost all of its energy supplies from Russia and Ukraine. Moldova's dependence on Russian energy is underscored by an estimated $4.3 billion debt to Russian natural gas supplier Gazprom due largely to unreimbursed natural gas consumption in the separatist Transnistria region. Previous Russian decisions to ban Moldovan wine and agricultural products, coupled with their decision to double the price Moldova paid for Russian natural gas and the large debt continue to hamper economic growth. Moldova also depends heavily on the annual $1 billion in remittances from the estimated one million Moldovans working in Europe and former Soviet Bloc countries. During the global financial crisis in 2009, Moldova experienced a 6% contraction of its GDP, a shrinkage due to increased unemployment and decrease in remittances. To stabilize the country, the IMF allocated $186 million to Moldova to cover its immediate budgetary needs in the fall of 2009, and the Moldovan Government agreeing with the IMF to a new program worth $574 million. In 2010, an upturn in the world economy boosted GDP growth to about 7% and inflation to more than 7%. Economic reforms have been slow because of corruption and strong political forces backing government controls. Nevertheless, the government's primary goal of EU integration has resulted in some market-oriented progress. The granting of EU trade preferences has encouraged higher growth rates, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. The economy had modest growth in 2011, expanding by 6.8%. However, in 2012, with the Euro crisis and a devastating drought, Moldova's GDP stalled at an estimated 0.3% growth over 2011. Moldova's economic future remains vulnerable to political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices and the concerns of foreign investors as well as the presence of an illegal separatist regime in Moldova's Transnistria region.

GDP (purchasing power parity):
$12.03 billion (2012 est.)
country comparison to the world: 150