The Republic of Moldova finds itself grappling with an ongoing economic recession, with economists predicting a meager growth of nearly 2% by the end of this year. The alarming state of the country’s economy is reflected in the latest data from the Customs Service (Serviciul Vamal), which confirms the significant challenges faced by the nation. According to the report by BANI.MD, exports of goods and products have plunged by a staggering 22% in the first six months of this year compared to the same period in 2022.
In addition to the decline in exports, the data from the Customs Service reveals a 5.2% contraction in imports, indicating a broader economic slowdown.
The only glimmer of hope amid this economic downturn comes from re-exports related to the ongoing conflict in Ukraine. These re-exports amounted to 13 billion lei, marking a substantial increase of 10.4% compared to the same period in 2022. However, these gains are overshadowed by the overall decline in trade, leaving the Moldovan economy in a fragile state.
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Experts and analysts are closely monitoring the situation, but the road to recovery seems uncertain, with potential challenges lying ahead.
The International Monetary Fund (IMF) has also weighed in on the economic outlook for Moldova. According to their forecasts, the country is expected to experience an average annual inflation rate of 13.8% in 2023. While they predict some improvement in the following year, 2024, the inflation rate is still projected to be at 5%. Such high inflation rates can further exacerbate the economic hardships faced by the population.