WB IMPROVES TARGET GROWTH OF MOLDOVAN ECONOMY

The World Bank (WB) improved the target figures of the Moldovan GDP growth and the next two years, despite the worsening of expectations concerning the world economy.

According to the January WB report “Global Economic Prospects”, the GDP growth in Moldova in 2018 will account for 4.8%, in 2019 – 3.8%, in 2020 – 3.5%, in 2021 – 3.2%. In comparison with the June 2018 report, the forecast for the past year was improved 1%, while for 2019 – 0.1%.

WB experts say this was due to the growth of private consumption against the background of the growth of real pay size and the rehabilitation of remittances, as well as the improvement of the situation in the financial sector.

The forecast of economy growth in Ukraine was lowered to 2.9% from 4% in 2019, in Romania – to 3.5% from 4.5%, in Russia – to 1.5% from 1.8%.

In general, the world economic growth is expected to slow down to 2.9% from 3% due to strengthening risks and unfavorable factors. In 2020-2021, it will brake to 2.8%. The growth slowdown may be the result of decline in the trade and investment volumes.

The Moldovan Ministry of Economy and Infrastructure and the International Monetary Fund also forecasts an inflation of 3.8% in Moldova in 2019, while the European Bank for Reconstruction and Development – 4%.