MOLDOVA AGREED WITH IMF FOR THE MACROECONOMIC FORECAST OF 2020

Moldova’s gross domestic product (GDP) will decrease by 4.5% in 2020 in comparison to 2019, said the Minister of Economy Serghei Railean in a regimen of video conference with the head of the IMF Mission for Moldova Ruben Atoyan.

The discussion was held as a part of a two-week (until July 22) remote work of the Fund’s Mission. Its experts, in discussions with representatives of the Moldovan leadership, are considering a new three-year IMF cooperation program with the government and the National Bank of Moldova (NBM).

The size of the financial component of the program is US $550 million. In the case of its approvement by the Board of Directors of IMF on September 16, Moldova will receive about US $100 million in September 2020 to support economic agents and the population in regard with the crisis.

The Minister noted that the economy generates GDP in the amount of 205.2 billion lei this year. Due to the pandemic crisis, exports will fall by 12.8%, imports - by 10%.

According to the ministry’s forecasts, real sector indicators will decline: industry - by 3%, agricultural sector - by 11.9%, investments - by 4.8%.

“We are aware of the problems of 2020. But we will continue the reform program, adjust plans in accordance with the evolution of the pandemic, determining optimal solutions to cover the budget deficit,” the minister said.

The discussion was attended by the head of the IMF’s permanent mission in the RM Volodymyr Tulin.