Moldova Economic Outlook
May 12, 2020
Economic conditions deteriorated sharply in the first quarter of the year, after annual growth plummeted to 0.2% in the fourth quarter of 2019. Although industrial output gathered momentum in January–February, production is set to have slumped in March as Covid-19 ravaged the economy, likely leading to a contraction of merchandise exports in Q1. Moreover, lower remittance inflows, weaker household spending and postponed investment decisions in March seemingly weighed heavily on overall demand in Q1, and are set to hammer the economy even harder in Q2. Amid urgent balance of payment needs, on April 17 the IMF approved an emergency USD 235 million loan to the country. Meanwhile, although the government has yet to unveil a comprehensive fiscal package, unemployment benefits have been expanded and some taxes deferred.Moldova Economic Growth
The economy is set to shrink this year as the Covid-19 pandemic takes its toll. Consumer spending will likely plummet amid falling remittances, while capital investment should decline as households and businesses postpone investment decisions. Although the fiscal deficit is set to jump as a result of the crisis, public debt should remain at a comfortable level. FocusEconomics panelists see GDP contracting 2.4% in 2020, which is down 1.2 percentage points from last month’s forecast. In 2021, they project it to expand 3.5%.Moldova Economy Data
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Moldova Facts
| Value | Change | Date | |
|---|---|---|---|
| Exchange Rate | 17.15 | 0.03 % | Jan 01 |
| Stock Market | 0.1 | 0.0 % | Jan 07 |
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