BUCHAREST, Dec. 12 (Xinhua) -- Moldova's economy is in a sound position though it faced problems in the wine-making and wine-growing sectors earlier this year, Prime Minister Zinaida Grecianii said Friday, according to reports reaching here.

    The annual inflation rate in November stood at 8.5 percent, its first drop below 10 percent in the past six years, said Grecianii, while presenting to parliament her first report on the work of the government, which was formed eight months ago.

    She emphasized that her cabinet would continue to closely monitor Moldova's macroeconomic stability, the country's official news agency Moldpres reported.

    Moldova's gross domestic product (GDP) grew by 5.4 percent in the first half of 2008 compared to the same period last year, Grecianii said.

    This achievement was due to a successful change in Moldova's growth structure, which has reduced the proportion of investment while increased that of consumption in GDP growth, she added.

    According to the prime minister, foreign direct investment in Moldova amounted to 307 million U.S. dollars in the first half of 2008, 70 percent more than during the same period in 2007. Its main investors were the European Commission, Sweden and Britain.