​IMF EXPECTS A GENTLE RECOVERY IN GDP GROWTH IN MOLDOVA THIS YEAR - CLARA MIRA

The active and resolute policy to bridle inflation, waged by the National Bank of Moldova (NBM), was efficient and is already bringing fruits, believe the recently appointed new IMF's Mission Chief for Moldova Clara Mira. She said in her interview to News Agency INFOTAG that after a very articulate peak of almost 35% in October 2022, the rate of inflation began decelerating here.

"Recently, we have seen a steady downward trend in core inflation. At the same time, spillovers from the crises have been contained, and inflation expectations are under control," she said.

According to the IMF's Mission Chief for Moldova, the strong response and credibility of the NBM, as well as a more restrictive-than-expected fiscal policy and more favorable global energy and food prices contributed to rapid disinflation.

"In anticipation of a rapid decline in inflation, the NBM moved to easing of monetary policy. In the future, it will be important for the central bank to continue efforts to return inflation to the target level, adjusting its actions as necessary based on incoming data and revised forecasts," Clara Mira believes.

According to her, controlling inflation is the best contribution the NBM can make to maintain macroeconomic stability and protect the most vulnerable population groups in any country, since inflation is basically a tax on poverty.

The new IMF's Mission Chief for Moldova said that the downward trend in inflation and the easing of monetary policy will stimulate domestic demand (consumption and investment).

"Given also that fiscal policy is projected to be more expansive than last year, we expect to see a mild recovery in GDP growth in 2023," Clara Mira said. INFOTAG's dossier: Clara Mira has been serving in IMF structures for more than 15 years. Prior to joining the Fund, she served at the European Commission and the Central Bank of Spain.