WB PRESERVES MOLDOVA’S ECONOMIC GROWTH FORECAST UNCHANGED

The World Bank maintains that the growth of the Moldovan GDP in 2019 will account for 3.4%, in 2020 – 3.6% and in 2021 – 3.8%. This is said in the new WB report on the economies in countries of Europe and Central Asia. Meanwhile, against the June report Global Economic Prospects, the target growth of the Moldovan economy was left unchanged.

According to the document, WB experts fear that in general the world economic growth this year will slow down to 2.6% from 2.9% against the growing risks and unfavorable factors. In Eurozone it is expected at 1.1% - 0.1% less than the June forecast.

“The activity in the Eurozone has considerably lowered since 2018, especially in the production sector, which is registering a sharp decline. While the industrial production and the external trade demonstrate considerable lowering, the consumption activity demonstrates just the first signs of worsening of the situation against the slowdown of retail sales and lowering of consumers’ expectations”, economists say.

As Infotag has already reported, in June the WB lowered the Moldovan economy growth forecast for 2019 by 0.4%; meanwhile the target growth for 2020 was raised 0.1%, while for 2021 – for 0.6%. This was explained by smaller volumes of remittances and the possible growth of inflation, which threatens to undermine the disposed revenues and lead to economic growth forecast.

Among the main problems for long-term sustainable growth of Moldovan economy there were unfavorable demographic trends in the republic, low productivity and vulnerability to external shocks.

The IMF and the EBRD forecast the growth of Moldovan GDP within 3.5% in 2019 and 3.8% - in 2020. The Moldovan Ministry of Economy and Infrastructure is more optimistic, saying that the national economy will grow at least 3.7% this year.

Over 6 months the Moldovan GDP reached 90,889 million lei (US$5,106 million) in current market prices, in real terms growing 5.2% against the equivalent period of 2018.