Moldovan economy reached pre-crisis development level - NBM
The economy of Moldova has reached its pre-crisis development level, the National Bank of Moldova (NBM) said.
According to the NBM statement, assessing the current macroeconomic condition and medium-term macroeconomic indices, the gross domestic product (GDP) went up 6.9% in real terms in 2010 against the 2009 level. The economy's recovery from recession was predetermined by a positive dynamics in all sectors.
At the same time, the NBM said "the domestic demand is a determinative factor for the GDP growth, due to the restoration of expectations upon the national economy dynamics, as well as the increase of financing resources, which will cause an additional inflation pressure".
In January 2011, the amount of newly provided credits went up 38.1% in comparison to 7.8% in January 2010 due to the growth of foreign currency lending to legal entities, as well as decrease of credit interest rates in national currency by 1.8 percentage points - to 15.2% from 17%.
For preventing inflation expectations, the NBM Administrative Board decided in February to keep the monetary policy's interest rate at the level of 8%. The decision is called upon to consolidate perspectives of the inflation process softening in the context of created favorable preconditions for a durable economic growth. Also, the decision is aimed at the stabilization of banking interest rates and formation of savings by the population.
The NBM said that "it will firmly govern the surplus liquidity in the banking system through sterilization operations for the purpose to increase the efficiency of monetary policy's transmission channels and ensuring a deflationary climate".
According to its forecasts, in spite of the going-down annual inflation in the 1st quarter, inflation pressures will temporarily go up in the 3rd and 4th quarters, mostly, due to the fuels and foodstuff price fluctuation at the international market.
"If further forecasts reflect a high-risk exceeding of medium-term inflation's established limits, the NBM will toughen the usage of available monetary policy instruments, including the minimum required reserves for turning the inflation back to established limits", the NBM statement said.
Infotag's dossier: According to last forecasts of the National Bank, the inflation level in 2011 will reach 7.9%; in 2012 will be 4.5%. In comparison to the previous forecasts, the inflation index was increased by 0.6 percentage points for 2011 and decreased by 0.1 percentage points for 2012. Main inflation determiners are supply factors that will be reflected in the consumer price index, mostly, through administered prices and foodstuff prices.
Infotag
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