Twitter On the back of weaker domestic demand and downward spillover from international commodity prices, the inflation rate declined to 5.9 percent in March 2020. Growth in 2019, at 3.6 percent, was underpinned by strong domestic demand led by wage increases, remittances, credit expansion and rising public spending. It is also one of the weakest economies in Europe. Click on the button below to get started. Other taxes include a value-added tax. The World Bank Group works in every major area of development. Read more about Moldova Economy. The level of overall financial intermediation remains shallow.

Drought may lead to a drop in agriculture output. With a moderate climate and productive farmland, Moldova's economy relies heavily on its agriculture sector, featuring fruits, vegetables, wine, wheat, and tobacco. The Special Topic of the report provides some insights on firm performance, as well as policies needed to ensure a swift and equitable recovery.

Your feedback is very helpful to us as we work to improve the site functionality on worldbank.org. The Gross Domestic Product (GDP) in Moldova was worth 11.96 billion US dollars in 2019, according to official data from the World Bank. Get a sample report showing our regional, country and commodities data and analysis. The inflation rate is therefore set to decrease gradually in 2020, bouncing back at the beginning of 2021 as demand recovers. Tax Burden 86.1 Create a Graph using this measurement, Government Spending 71.6 Create a Graph using this measurement, Fiscal Health 96.2 Create a Graph using this measurement. In April, the authorities adopted a set of supportive measures to counteract the pandemic with an estimated cost of 2.4 percent of GDP. Better educated Moldovans often leave to work elsewhere. No durable governing coalition had been formed by late 2019. About In the first quarter of 2020, collections by the fiscal service decreased by 3.6 percent y-o-y. Moldova gained independence after the collapse of the Soviet Union in 1991 but is vulnerable to economic pressure from Russia and has to contend with a secessionist pro-Russian movement in its Transnistria region, which is currently home to about 1,000 Russian troops. To ensure adequate liquidity, the central bank lowered the reserve requirement rate by over 6 pp down to 34 percent and cut the policy rate further to a historic low of 3.25 percent. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face.

However, given the importance to the economy of remittances from Moldovans working abroad, as well as exports to European markets, it is likely that the coronavirus pandemic will have a considerable negative impact on Moldova's economy in 2020. LinkedIn Pro-Russian Socialists triumphed in October 2019 local elections. Moldova’s economy depends on emigrants’ remittances and agricultural products like fruits, vegetables, wine, and tobacco. A swift recovery would require strong financial intermediation, that could be affected by higher firms’ bankruptcy rates and lower deposits. Are Moldovan Firms Ready for Fast Recovery. You have clicked on a link to a page that is not part of the beta version of the new worldbank.org.

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. A fall in remittances will further depress private consumption.

Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. The inflow of new deposits has decreased by one-third, but the overall deposit stock is still 2.5 percent above the end-2019 level, suggesting sustained confidence in the banking sector. A sharp drop in exports and remittances, however, will widen the deficit back to above 10 percent of GDP in 2020.