Economic Policies on March 16 – April 1, 2011

Labour market

Unemployment continues to grow…

For 2010, the national unemployment rate registered the value of 7.4%, increasing by 1% comparative to 2009. There also were significant differences between the men — 9,1% and women — 5.7% unemployment rate. According to NBS in 2010 the economically active population was about 1.235 million persons, less than in previous year by 2.4%.This decrease is due to decrease by 41 thousand in the number of employed persons. Employed persons amounted to 1.143 million, decreasing by 3.5% compared to 2009. According to the source, according to the level of education 45% are people with secondary general and vocational education, 23 are people with higher education. People with specialized secondary education and those with secondary education have been close to 15.8% share and 15.6%, respectively. Among employed persons with higher education three of the four work in urban areas, and more than half (55.4%) are women. The presented information was obtained from quarterly surveys accomplished in 2010 on quarterly sampling of 12,000. Estimators for 2010 were calculated as annual average based on four quarters, the response rate being 93.6%.

Financial-banking system

Interest rates at historical minimum…

According to the NBM in the early months of 2011 the weighted average interest rate for new loans in national currency amounted to around 14.5%, being a new historical minimum. In February, for example, new loans in MDL worth about 910 million lei were contracted with the interest rate of 14.53%, by about 52% more than in January 2011. The volume of loans contracted in foreign currency in February 2011 was the equivalent of 950 million MDL, by 36% more than in January this year. In early February, the National Bank governor, Dorin Dragutanu, stated that the volume of new loans is increasing due to high levels of liquidity in the system and due to the increased volume of new attracted deposits. NBM data show that the volume of new deposits attracted in February was about 33.64 billion lei, by 5% more than in January.

Country’s external debt

In 2010 Moldova’s external debt has increased by 9.5%, but the greatest share is on the private sector…

According to NBM data, at the end of 2010 Moldova’s foreign debt reached about 4.78 billion dollars (about 83% of GDP), which is 9.5% higher than that recorded at the beginning of 2010. About 23% of this debt is on the government sector, which accounted to USD 1.116 billion, the largest share being on the private or nongovernmental sector. Data provided by NBM show that the largest increases in external debt of the Republic of Moldova took place in 2005, 2006, 2007 and 2008. In 2005, external debt increased by 10.43% compared to 2004, in 2006 — with additional 21.4% compared to the level registered in 2005, a record increase rate was registered in 2007 — by 32.6%, and in 2008 — the external debt increased by additional 22.37% compared to that of 2007. Finance Minister Veaceslav Negruta, repeatedly mentioned that financial injections in Moldova, in the form of grant or loan, have a multiplier role and ultimately determines the economic growth. “Due to external financial support, the economy is able to cope, to carry out a policy of adequate social protection and to ensure economic growth.”

e-democracy.md