Moldova's Business Barometer slightly enters positive zone, after entering negative zone in previous quarter

Chisinau, 16 June /MOLDPRES/ - The Business Barometer returned slightly to the positive zone in the first quarter of 2016, after entering the negative one in the previous quarter, and recorded the lowest level in the last years. This tendency is more pronounced for foreign enterprises in comparison with the local ones, as well as for enterprises from the agricultural sector, where optimism sensibly gains ground, according to the Business Barometer, unveiled by the Moldovan-German Economic Cooperation Public Association and the France-Moldova Chamber of Commerce and Industry.    

Only the enterprises with activity oriented to foreign countries remain more cautious, even if the noticed tendencies are quite positive as compared to those of the last quarter of 2015, according to a survey made by Magenta Consulting.

“The peace which appeared on the stage of the movements of political and social contestation when the new government was sworn in office, the first measures adopted, among which the moratorium on the state control, dialogue between the authorities and the business environment, as well as the appointment of a new governor at the National Bank of Moldova (BNM) had a considerable effect,” the survey’s authors also said.  

The entrepreneurs’ optimism about the prospects for developing business grew significantly in last May against February 2016, though failing to reach the level of the third quarter of 2015.”This index certainly returns to the positive ground of the barometer, showing a pronounced optimism on behalf of enterprises’ heads. All the types of activities – national or international – take advantage of this improvement. The agricultural sector records a positive result, but especially the banking one, for which the indicator reached the green zone of the barometer – a first record – after three quarters marked by a pronounced prudence,” experts said.   

On the other hand, the survey’s authors said that, although the enterprises’ expectations for the last quarter were slightly positive as concerns the evolution of the turnover, the results proved to be lower than the expected ones, most of the them registered decrease. The trade sector was the worst hit by this tendency. Only the banking sector recorded positive results, in comparison with the very negative expectations for this quarter.   

The expectations for the next quarter are optimistic. “Agriculture registers a firm position in the “green” zone. And the banking sector and the insurances one show a more pronounced optimism in comparison with the previous quarter – an encouraging sign for Moldova’s economy”, according to the Business Barometer. The prospects in terms of investments for the next quarter are again positive, no matter the type of enterprises (foreign or local capital).

At the same time, the profit of enterprises was decreasing in comparison with the prospects made. The ones with foreign capital were less hit than the local ones.  

The resumption of the of the international financial support for Moldova, especially on behalf of IMF, re-launch of the programmes on cooperation of the European Union, progress made to fight corruption, as well as the justice reform remain indispensable for re-launch of the confidence on behalf of the business environment. Although the political and social instability ended, the business environment remains, nevertheless, prudent in its relation with the authorities, the Business Barometer also said.   

The survey was made on 13 April – 12 May 2016 on a sample of 610 local and foreign enterprises carrying out their activity all over Moldova.

(Reporter V. Bercu, editor A. Raileanu)