Moldova

Moldova is country of Europe located in east Europe.

Details

Official Name:Republic of Moldova
Capital:Chișinău
Total area:33 846 km2
GDP per capita:$3,415
Native Language:Moldovan (Romanian)
Government:Parliamentary republic
Population:3,559,500
Major Religion:Orthodox Christianity
Monetary Unit:Moldovan leu (MDL)

Moldova, officially the Republic of Moldova, is a landlocked country in Eastern Europe located between Romania to the west and Ukraine to the north, east, and south. The capital city is Chișinău.

Moldova declared itself an independent state with the same boundaries as the Moldavian Soviet Socialist Republic in 1991 as part of the dissolution of the Soviet Union. On July 29, 1994, the new constitution of Moldova was adopted. A strip of Moldova's internationally recognized territory on the east bank of the river Dniester has been under the de facto control of the breakaway government of Transnistria since 1990.

Since the collapse of the Soviet Union, the relative weight of the service sector in the economy of Moldova started to grow and began to dominate the GDP (now about 63.5%), as a result of decrease in industry and agriculture. However, Moldova remains the poorest country in Europe.

Economy

After the breakup of the Soviet Union in 1991, energy shortages contributed to sharp production declines. As a part of an ambitious economic liberalization effort, Moldova introduced a convertible currency, liberalized all prices, stopped issuing preferential credits to state enterprises, backed steady land privatization, removed export controls, and liberalized interest rates. The government entered into agreements with the World Bank and the International Monetary Fund to promote growth.

Recent trends indicate that the Communist government intends to reverse some of these policies, and recollectivise land while placing more restrictions on private business. The economy returned to positive growth, of 2.1% in 2000 and 6.1% in 2001. Growth remained strong in 2007 (6%), in part because of the reforms and because of starting from a small base. The economy remains vulnerable to higher fuel prices, poor agricultural weather, and the skepticism of foreign investors.