The EU is the main destination of Moldovan goods and services, and the export of goods to this market is constantly expanding, - Expert-Grup.

The EU is the main destination of Moldovan goods and services, and the export of goods to this market is constantly expanding, - Expert-Grup.

This is stated in the publication of the Independent Analytical Center "The role of the European Union in promoting Moldovan exports." Experts appreciated the role of the EU economy in the development of Moldovan exports and stated the importance of accelerating the implementation of the provisions of the Association Agreement with the EU. They note that for more than 10 years, part of the Moldovan export of goods and services has been focused on the EU, while at the same time helping to neutralize negative shocks from other markets. The experts considered that in the period of 2000–2018 Moldovan exports to the EU grew from $ 165.3 million to $ 1.86 billion, and since 2006 the European market has been the main destination for Moldovan products. Moreover, if in 2006-2014 the EU share in the Moldovan export structure was about 50%, then after the creation of the Deep and Comprehensive Free Trade Area (DCFTA), the EU’s share in the export structure increased from 61.9% in 2015 to 68.8% in 2018. This is all occurred against the background of a significant decline in Moldovan exports to the CIS countries - due to the introduction of tariff duties, restrictions on the supply of fruits and meat products, the economic downturn in Ukraine and Belarus. In 2018, in the total volume of exports of goods supplies to the CIS countries amounted to 15.4%, while the share of other countries - 15.8%. EU demand has become a stabilizer for Moldovan exports in the context of negative shocks from other sources. Overall, the EU’s contribution to export growth was positive, with the exception of 2009, when EU demand had a negative effect on export growth. However, in 2009, against the backdrop of the economic crisis, all markets had a negative impact on the dynamics of exports. It is also noted that the economic stagnation in the EU in 2012-2013 had a negligible impact on export growth. In other years, the negative impact of shocks from other markets was compensated by the positive contribution of the EU: in 2006, 2013 and 2014, when, against the background of restrictive measures imposed by Russia, Moldova's exports nevertheless grew due to exports to the EU market. At the same time, experts note that the success of the transition of the Moldovan economy to the export-based growth model essentially depends on the level of integration into the EU market. “More than half of export figures depend on the economic dynamics in the EU, which, in turn, creates a number of indirect effects: stimulating investment, increasing wages, increasing employment. This conclusion confirms the strategic importance of implementing all the provisions of the Association Agreement with the EU in order to use the possibilities of DCFTA, ”economists at Expert-Grup say.// 11.03.2019 – InfoMarket.

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