Moldova's economy to increase by 4 per cent in 2017 - World Bank

Chisinau, 5 June /MOLDPRES/- The economy of Moldova will register a 4.0-per cent-increase this year compared to 2.8 per cent as estimated in January, the World Bank said in the report on World Economic Outlook published on Monday.

The report reads that in 2018 Moldova’s economic growth will be 3.7 per cent and in 2019 – 3.5 per cent.

“Stimulative fiscal policy especially public investment and remittances will further back economic growth. Revitalization of foreign currency inflows, recovery of financial sector and business environment will encourage more investment. With a fiscal deficit projected at minus 3 per cent of GDP in 2018, the public debt will rise as a result of the increase in external assistance in 2017 and 2018, debt that will decline by late 2019”, the report said.

Given the low level of savings, as the pace of growth will strengthen, the current account deficit will gradually increase, although below the level of historical averages, the experts of the international financial institution also said. They forecast that the National Bank of Moldova (BNM) will be able to keep the inflation rate close to the 5-per cent-target value. The World Bank estimates a decline in the poverty rate measured by 2019 by about 5 percentage points.

Earlier, the International Monetary Fund also raised forecasts for GDP growth of Moldova in 2017 from 3 per cent to 4.5 per cent, and in 2018 – from 3.6 per cent to 3.7. In March 2017, the Economics Ministry improved the GDP growth forecast for 2017 from 3 per cent to 4.5 per cent and stood at 3.5 per cent forecast for 2018.

(Reporter V. Bercu, editor M. Jantovan)