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Wednesday, October 17, 2018

Moldova GDP sees growth in 2013

The World Bank recently announced that Moldova saw its gross domestic product grow by a record-setting 8.9 percent in 2013.

The growth mostly came from a good harvest year and increased private consumption fueled by remittances and wage growth. The economy remains vulnerable to risks due to a volatile external environment and other challenges in the country's financial sector.

"Because of weaknesses in the external environment and a projected slowdown in agriculture, we expect growth to decelerate to two percent in 2014 and stabilize at (four to 4.5) percent during 2015-2017," Qimiao Fan, the World Bank's country director for Belarus, Moldova and Ukraine, said.

Moldova's macroeconomic policies have been consistent with the country's inflation target and its inflow of remittances grew to record high levels in 2013. Real exports increased almost two times faster than the pervious year.

"To fully reap the benefits of a robust economic performance and mitigate external and internal risks, Moldova must continue to address key challenges to growth, by improving its business climate, ensuring financial sector stability and development, enhancing equity and efficiency of public expenditures, and most importantly, improving governance," Fan said.

Moldova joined the world bank in 1992.