Economic success: High growth, low inflation
After the best-ever year in the history of the republic, the private sector is growing fast in Pridnestrovie. The economy is good and inflation is under control. The country's young tecnocrats at the finance ministry seem to have mastered the challenge.
The aggregate index of consumer prices (inflation rate) in Pridnestrovie was only 10.83% in 2005 - the lowest indicator in the history of the self-proclaimed republic.
According to the country's finance ministry, December's inflation rate clicked in at 1.38%, after 2.70% in November. Foodstuff prices in December grew up by 1.8%, prices on industrial goods by only 0.52%, and inflation in services by 0.71%. During the year 2005 as a whole, these three basic indicators went up by 10.67%, 10.51%, and 11.22%, respectively.
In 2004, the rate of inflation in Pridnestrovie was 25%, and in 2003 it was 32%.
With strong and sustained growth in the private sector economy of the country, Pridnestrovie is allowing modest inflation so as not to cause a monetary squeeze. The projected inflation rate for 2006 is 15%. The country is on the right path. Its democratically elected government is taking even more far-reaching steps towards modernization and liberalization.
