Moldova is the second smallest of the former Soviet republics and the most densely populated. Industry accounts for only 20% of its labor force, while agriculture's share is more than one-third. It remains the poorest country in Europe. It is landlocked, bounded by Ukraine on the east and Romania to the west. Despite improvements on the economy the Republic of Moldova remains Europe's poorest nation.

On January 2, 1992, Moldova introduced a market economy, liberalizing prices, which resulted in huge inflation. From 1992 to 2001, the young country suffered its worst economic crisis, leaving most of the population below the poverty line.^{[citation needed]} In 1993, a national currency, the Moldovan leu, was introduced to replace the Soviet ruble. The end of the planned economy also meant that industrial enterprises would have to buy supplies and sell their goods by themselves, and most of the management was unprepared for such a change.^{[citation needed]} Moldova's industry, especially machine building, became all but defunct, and unemployment skyrocketed.^{[citation needed]} The economic fortunes of Moldova began to change in 2001; since then the country has seen a steady annual growth of between 5% and 10%. The early 2000s also saw a considerable growth of emigration of Moldovans looking for work (mostly illegally) in Italy, Portugal, Spain, Greece, Cyprus, Turkey, and other countries, in addition to work in Russia.^{[citation needed]}Remittances from Moldovans abroad account for almost 38% of Moldova's GDP, the second-highest percentage in the world. However, Ion Marandici claims the high level of remittances did not lead to development. Officially, Moldova's annual GDP is on the order of $2,022 per capita; however, a significant part of the economy goes unregistered due to corruption.^{[citation needed]}

Moldova ⁱ/mɒlˈdoʊvə/, officially the Republic of Moldova (Moldovan/Romanian: Republica Moldova pronounced [reˈpublika molˈdova]) is a landlocked state in Eastern Europe located between Romania to the west and Ukraine to the north, east, and south. It declared itself an independent state with the same boundaries as the Moldavian Soviet Socialist Republic in 1991 as part of the dissolution of the Soviet Union. On 29 July 1994, the new constitution of Moldova was adopted. A strip of Moldova's internationally recognized territory on the east bank of the river Dniester has been under the de facto control of the breakaway government of Transnistria since 1990.

The nation is a parliamentary republic with a president as head of state and a prime minister as head of government. Moldova is a member state of the United Nations, Council of Europe, WTO, OSCE, GUAM, CIS, BSEC and other international organizations. Moldova currently aspires to join the European Union, and has implemented the first three-year Action Plan within the framework of the European Neighbourhood Policy (ENP).