The Deficit of Trade Breaks the Absolute Record

The deficit of trade of the Republic of Moldova could exceed one billion USD in 2005, if the tendencies of the last two years, when the deficit grew by 45 per cent per year, and in 2004 amounted to the absolute record of over 700 million dollars, persisted. The data of the Department of Statistics and Sociology show that in 11 months the value of exports was 684.5 million dollars lower than the one of imports that continued to grow faster than deliveries to foreign markets, and in November the deficit of trade consisted 92 million dollars and approached the record of the last 14 years, 106.8 million correspondingly, registered in December 2003. The big price of imports from the countries of the European Union and an enormous unbalance in the trade exchange with Ukraine, one of the main partners, are some of the reasons for the unprecedented deficit of trade. The depreciation of the dollar that generates the fall of exports in price has also had an impact on the rest of the balance of trade, given that the export to CIS countries continues to prevail. A powerful growth of imports is generated by a significant growth of the domestic consumption. A year ago, the Executive Council of the International Monetary Fund stated in the country report that "the drastic increase of the internal demand, imports, and inflation are the signs indicating overheat of Moldovan economy". The same was stated by an IMF mission in November 2004. The main negotiator of IMF in the relationship with the Republic of Moldova, Marta de Castello Branco, declared after a visit to Chisinau that the deficit of trade, which was financed by the transfers of Moldovan citizens employed abroad, grew bigger and bigger. The Republic of Moldova is on the first place in Europe according to the sum of the remittances in the GDP, 25% correspondingly. These transfers stimulate the consumption and consist one of the main factors of the growth", estimates the high official of the Fund. The experts state that there is an increase of the import of consumer goods that have been traditionally produced in the Republic of Moldova and further exported. The deficit of trade "will continue to grow, under the circumstances of the liberalisation of trade and the conclusion of new agreements on free exchange", state the experts in the exports promotion.