Pridnestrovie per-capita GDP up 17.3% despite economic warfare

Shoppers in a supermarket in Pridnestrovie: GDP per capita is up 17.3% this year

TIRASPOL (Tiraspol Times) - In Pridnestrovie, a new and emerging country also known under names such as Transdniester or Transnistria, annual per capita GDP grew 17.3 percent to $990.

As reported by RBC News, the country's GDP growth amounted to 5.6 percent in January-September 2006. A spokesman for the PMR Economy Ministry's Federal Statistics Service informed that nominal GDP amounted to $404.5 million, and that in the same period, annual per capita GDP was up just over 17.3 percent.

The republic's Economy Ministry pointed out that GDP growth was registered for the first time since the beginning of the year. Current GDP growth may be attributed to positive macroeconomic developments in the third quarter of 2006 and financial support, which helped sustain high governmental spending. The third quarter's GDP growth was the highest this year and accounted for 50 percent of the overall GDP growth for the first nine months.
The latest data translates to a GDP, based on purchasing power parity, of USD $3,114.

Economic warfare causes drop in exports

While still not integrated into the international system, Pridnestrovie has no access to international financial markets or any help from institutions such as the World Bank or the International Monetary Fund.

In March, the small country encountered an escalation in what many here perceive as "economic warfare" when local companies found itself unable to export without prior Moldovan customs clearance. The move, instigated by the government of Moldova, caused a 31 percent drop in exports.

Among major exporters who were hard hit by the move were MMZ, a major steel works located in the northern city of Rybnitsa. The steel exporter provides nearly 50% of Pridnestrovie's tax revenue. Other major exporters are Tirotex, the second largest textile manufacturer in Europe, and Kvint, a famous exporter of brandy and wines.

To compensate, the government requested loans and humanitarian aid abroad. Organizations from Germany, Ireland and the United States have provided donations, while the biggest benefactor this year has been the Russian Federation which since March has helped with approximately US$40 million in financial emergency assistance.

Earlier this month, the European Union announced that it would double financial aid to Moldova, allocating to it 254 million euros. None of this cash will be shared with the half million people who live in Pridnestrovie, despite earlier claims by Moldova that the area east of the Dniester is part of its so called "territorial integrity."

In Moldova, according to figures released by official state news agency Moldpres, there has been registered a 4.6 percent increase in the Gross Domestic Product (GDP). This figure is based on data for the first nine months of 2006 and does not include PMR, or Transnistria as it referred to in Moldova.

The Pridnestrovskaia Moldavskaia Respublica (PMR) declared independence on 2 September 1990, more than 16 years ago. Neighboring Moldova never accepted Pridnestrovie's right to independence and still clings to its 16 year old territorial claim. In a referendum earlier this year, 94% of Pridnestrovie's voters rejected unification with Moldova, while 97% voted for independent statehood. (With information from RBC News)

See also:
» Moldova gets €254 million handout from EU; Pridnestrovie gets zilch