Moldova's economy exhibits tentative signs of recovery amidst lingering challenges
After weathering a period of economic hardship, Moldova is exhibiting promising signs of recovery. The Independent Analytical Center "Expert-Grup," during the MACRO 2023 Conference, presented forecasts of a 3.3% economic expansion in 2023 and a more robust 5.4% growth in 2024.
This anticipated rebound is primarily attributed to the exceptional performance of the agricultural sector, which experienced a remarkable 30% surge in output due to a favourable harvest. However, the report underscores the significant challenges affecting other sectors, particularly weak domestic and external demand, compounded by the ongoing uncertainty arising from the war in Ukraine.
"Without the agricultural sector's outstanding contribution, the Moldovan economy would have stagnated this year," stated Adrian Lupusor, Executive Director of Expert-Grup. "This marks the first time in two decades that economic growth will not be sufficient to fully compensate for the losses incurred from the previous year's recession."
While the projected growth offers a glimmer of hope, experts emphasise the imperative of further action to ensure long-term economic stability and prosperity. Viorel Garaz, Secretary of State at the Ministry of Economic Development and Digitalization, acknowledged the need to prepare for an increasingly competitive landscape within the European Union.
"Choosing European integration is the right path for Moldova," Garaz stated. "However, we must be cognizant of the fact that it implies competing with highly developed economies and long-established companies." He emphasised the need for strategic planning and continued economic reforms to equip Moldova for success within the European market.
Natalia Gavrilita, a member of the National Bank of Moldova's Supervisory Board and former Prime Minister, highlighted the critical role of attracting foreign investment to fuel further economic growth.
"There are specific areas where we could have achieved better results," Gavrilita acknowledged. "While their impact on this year's 2% recovery is debatable, it is crucial to address the underlying limitations. Our current potential growth of 2-3% is simply insufficient to achieve our goals of economic integration and necessary reforms. To catch up with the EU and achieve our aspirations, we must significantly enhance our growth potential."
The MACRO 2023 Conference provided a valuable platform to discuss strategies for stimulating inclusive and resilient economic development in Moldova, particularly within the context of the country's ongoing European integration efforts.
Translation by Iurie Tataru
