Moldovan economy registers growth of 3.7 per cent in first quarter 2018

Chisinau, 15 June /MOLDPRES/ – The economy of Moldova has registered real growth of 3.7 per cent in first quarter of 2018, compared to 3.1 per cent in same period of 2017. Statistics confirm estimates of analysts and authorities, which expect an advance of 03 – 04 per cent in 2018.

The National Bureau of Statistics (BNS) today announced results for January – March 2018, indicating a gross series increase to MDL 37.6 billion of Gross Domestic Product (GDP). It is the 9th consecutive quarter in which the economy is rising after decline in 2015.

According to the BNS’s information and media communication service, wholesale and retail trade, information and communications, mining and manufacturing, as well as real estate and construction transactions contributed most to economic growth. The gross value added in economy exceeded 2017 by 3.6 per cent and contributed to formation and growth of GDP by 85.7 per cent and 3.1 per cent, respectively.

A negative contribution to GDP growth was played by public administration and defence, compulsory social insurance, education, healthcare and social assistance.

The volume of product taxes have decreased by 2.1 per cent compared to same period of 2017.

In terms of GDP growth, it was due to an increase of 4.0 per cent in final consumption of households, which had a 90.9 per cent share of GDP. The volume of gross fixed capital formation was above level of same period of 2017 by 0.9 per cent. A negative contribution to GDP growth was recorded in net exports (- 2.3 per cent), as a consequence of much higher contribution to formation of GDP of Goods and Services Imports (64.0 per cent) exports of goods and services (36.9 per cent).

The Ministry of Economy and Infrastructure (MEI) forecasts an economic growth of 3.8 per cent in 2018, and IMF – 3.5 per cent. Recently, WB has stated that Moldovan economy would grow by 3.8 per cent in 2018, being fueled by private consumption, amid real wage growth and remittances. According to WB, real increase in public transfers and announced recovery in capital spending, with a focus on road sector, will support economic advance, "especially in election year 2018." The experts of WB believe that by financial sector, improving lending conditions, "it will be an increase and positive influence on private investment."

The experts of IAC "Expert – Grup" appreciate in recent issue of quarterly publication "Realitatea economica" (The economic reality) presented today that even if most sectors of national economy "have registered slight dynamics in first quarter of 2018, dynamic also supported by more active involvement of state by increasing public investments, appreciation of the Moldovan leu (MDL), limited prospects for growth of economy, by lowering purchasing power of remittances and increase in exports".

(Reporter V. Bercu, editor L. Alcaza)