Geography, agriculture and economy

Geography
The Republic of Moldova is one of the smallest countries in the Commonwealth of Independent States (CIS), which was established by 11 former Soviet republics in 1991. Moldova lies between Ukraine and Romania, it is landlocked and has an area of about 33,800 km2. Three fourths of the land is agricultural and about 10 per cent of the total area is forested. The total resident population of the country (excluding the separatist territory of Transnistria) is 3.3 million. With about 129 people per km2, Moldova has the highest population density among the Commonwealth states.

Agriculture
Because of the country’s rich and abundant farmland and temperate climate, agriculture has traditionally occupied a major place in the economy. The sector was hit hard by the collapse of the command economy, which dictated production models, provided inputs and guaranteed processing and marketing outlets. After 1991 the sudden lack of support systems dealt a blow to rural livelihoods.

Heavy use of chemicals in agriculture has contaminated soil and groundwater, and poor farming methods have led to soil erosion. The potential influence of climate change on erosion, drought and flooding is a further threat to agriculture.

Agricultural production is currently less than half of what it was at the time of the break-up of the Soviet Union in 1991. At present, agriculture and agro-processing industries account for about 30 per cent of the gross domestic product (GDP), but the sector’s relative share of the economy continues to decline.

Agriculture provides employment for about 43 per cent of the labour force. The sector exports processed products, including wine and spirits, and fruits and vegetables. Presently the agricultural sector is suffering from a trade embargo imposed by the Russian Federation on Moldavan wines, spirits and agricultural products.  

Economy
After performing poorly during the 1990s Moldova’s economy has strengthened in a stabilized socio-economic and political environment. Between 1990 and 1999 GDP shrank by two thirds, but since 2000 it has more than doubled. GDP increased from US$1.3 billion in 2000 to US$2.9 billion in 2005, and the annual GDP growth rate accelerated to 7.1 per cent in 2005. Gross national income per capita tripled from US$370 in 2000 to US$930 in 2005.

About one third of the economically active population has migrated to other countries in search of better opportunities, and their ranks include many educated and skilled young people. Remittances from workers abroad fuel the economy. They have increased continuously since 1993, and are now estimated to  contribute about 25 to 30 per cent of GDP. Remittances are one of the main factors driving the country’s strong macroeconomic growth over recent years. But dependence on remittances exposes the country to the risk that if remittance levels begin to fall, falling incomes will result in a sharp increase in poverty nationwide.

Source: IFAD

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the Republic of Moldova capital: Chisinau GNI per capita: 530 - 1,250 [more maps...] Explore... Rural poverty in Moldova Progress on the Millennium Development Goals: United Nations Statistics World Bank Statistics GNI per capita, Atlas method (current US$) 720.0 Total population (million), 2004 4.2 Rural population (million), 2004 2.2 Number of rural poor (million, approximate) 1.4 Rural population below the poverty line (%), 2003 67.0 Population living below $1 a day (%), 2003 22 Population living below $2 a day (%), 2001 64 Population living below the national poverty line (%), 2002 49   Source: World Bank