During 2001-2005 the Moldovan economy grew about 7 percent annually. This tendency has fuelled the illusion that Moldova is on the highroad. In fact, the rapid expansion of consumption and imports and the increase of economic imbalances determined rather an overheating of the economic system than an increase of its production capacity. The economic growth was restricted to large urban areas, while the small towns and villages languished. The growth was capital-intensive, but went along with the jobs shedding and amplification of migration. External markets remained undiversified and the exports – limited to a narrow range of products.
Business and Economy Review no.16. Special edition „Moldovan Economy in 2006”
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