After the collapse of the USSR and the declaration of its independence on 27 August 1991, the Republic of Moldova passed through a complex stage of transition to the market economy and experienced a significant economic recession.
The economic crisis in Moldova lasted for 10 years (from 1990 to 1999). During this period the GDP decreased almost by three times. Since 2000 the economy has been on the rise. This period is characterized by a steady recovery of the production output, which had a partly impact on poverty reduction. During the period 2000-2005 the GDP in real terms increased with 43 percent. Consequently the poverty rate decreased with 41.3 percent.
In a market economy the business activity provides the society with jobs, products and services and supplements the state budget with taxes.
For a successful development business activity needs freedom which contributes to the economic growth. “Economic freedom” represents a level of non-intervention of the state into the investments, production, distribution and usage of products and services to the extent which is considered by the population as the most efficient for the economy.
At present one of the primary tasks of the Government is to attract investments and create a favorable business climate for all investors both foreign and local ones.
In this connection, all necessary measures are being taken to stimulate the business activity and improve the investment climate focusing on geographical position of the country, skilled labor resources, fertile soils and participation of the country in free trade zones of the CIS countries and the countries of South Eastern Europe.