Moldova's Economy Rebounds Despite War: Key to Success?
The Moldovan economy, significantly impacted by the war waged by Russia in neighbouring Ukraine, is exhibiting signs of recovery.
Deputy Prime Minister and Minister of Economic Development and Digitalization Dumitru Alaiba announced this development. According to the official, the initial indications of an economic revival emerged in fall 2023, attributable to growth in private investments and industrial production.
"The economic climate has been challenging in recent times," Alaiba remarked. "However, there are encouraging signs since November of last year, with increasing evidence of an economic upswing." He elaborated by citing a 12% increase in private investments by Moldovan companies during the first quarter of 2024 compared to the previous year. This represents the first growth in investment since the war's commencement.
The Minister also highlighted a significant decline in inflation and interest rates. Furthermore, energy prices, a critical component of the economy, have stabilised. Alaiba emphasised the agricultural sector's increasing focus on European Union markets.
Welcoming the unprecedented surge in Moldovan fruit exports to the European market, Alaiba underscored the importance of continuing reforms, particularly within the justice system, as a crucial solution for strengthening the entire economy.
"While this progress is certainly positive," Alaiba cautioned, "it represents merely the initial steps. We are keenly aware that the Republic of Moldova requires more substantial growth than the 0.7% GDP increase recorded in 2023. The key to long-term economic prosperity lies in our unwavering commitment to ongoing reforms."
Data from the National Bureau of Statistics reveals that Moldova's economy registered a modest growth of 0.7% in 2023 compared to 2022. For comparative purposes, Romania's economic growth in 2023 slightly exceeded 2%, while Ukraine, amidst the ongoing war, surprisingly achieved a growth rate of 5.3%, according to IPN.
Translation by Iurie Tataru
