Moldovan economy records 4.5-per cent growth above expectations in 2017

Chisinau, 15 March /MOLDPRES/ - Moldova registered a 4.5-per cent economic growth in 2017 against the year before, above the expectations by analysts and officials, who relied on a 3-3.5-per cent increase in the Gross Domestic Product (GDP), according to data by the National Statistics Bureau (BNS), made public today. 

Official statistics shows that, in the fourth quarter, Moldova had the highest economic growth of the last year, of 6.4 per cent in real terms, against the same period of 2016. The pace of growth increased from 3.1 per cent in the first three months of 2017, with an insignificant drop in the second quarter, up to 5.4 per cent in the third quarter and, respectively, 6.4 per cent in the last three months of the year.   

BNS announced the results of the last year, which show an increase of the GDP up to 150.3 billion lei. The Economics and Infrastructure Ministry expected a GDP of 148.7 billion lei and its increase by 3.5 per cent. The International Monetary Fund and the World Bank anticipated a 3.5-per cent growth of the Moldovan economy in 2017, the European Bank for Reconstruction and Development was more reserved in the forecasts, expecting an advance of only 3 per cent.   

The final consumption of the residents’ households and the gross capital formation were the main engines of increase, although their contribution to the evolution of the Gross Domestic Product was different. The final consumption of the residents’ households increased by 4.9 per cent and contributed with 4.2 percentage points to the growth of all the economy, while the gross capital formation contributed with 1.2 percentage points to the growth. Consumption had a share of 85.8 per cent in the formation of the GDP and the gross fixed capital formation had a contribution of 21.9 per cent in the GDP’s value.  

According to BNS, in terms of resources, the wholesale and retail trade, maintenance and repair of vehicles and motorcycles, transport and stocking, activities of accommodation and public nourishment with a contribution of 1.3 percentage points for the GDP’s growth, followed by agriculture, industry and constructions, had the biggest contribution to the economic growth.     

The gross value added exceeded by 3.8 per cent the level of the year before on all the economy, contributing to the increase and formation of GDP by 3.3 per cent and, respectively, 84.1 per cent.  

The volume of taxes on goods grew by 6.9 per cent against the previous year, contributing to the increase and formation of the GDP by 1.1 per cent and 16.3 per cent, respectively.  

Experts said that the economic growth in 2017 had been based on the re-launch of consumption, which grew preponderantly due to the increase of remittances after two years of decrease and on the stepping up of public investments simultaneously with the unlocking of the foreign assistance in the beginning of the year.    

The Economics and Infrastructure Ministry forecasts a 3-4-per cent growth of the economy in 2018-2020 up to a value of 190.2 billion lei in 2020.   

(Reporter V. Bercu, editor M. Jantovan)