Annual edition of Moldovan Economic Trends publication launched

Chisinau, Oct. 25 /MOLDPRES/- The annual edition of the publication Moldovan Economic Trends was launched today by the National Institute of Economic Research. This includes data on developments in the social-economic field at global and national level.

Scientific researcher of the institute Victoria Fala said that due to the war in Ukraine, at the world level, there is a slowdown in economic growth, inflation pressure and high price dynamics are maintained . "In the current year, the world economy will evolve by 2-3%, and next year its growth will slow down even more. At the same time, there is pressure on the business environment and the population. The economy will moderate in the European Union as well, consumption is maintained, but investments have become more modest. In Ukraine, the Russian Federation and Belarus there is a strong economic decline," said Victoria Fala.

According to the expert, in the Republic of Moldova there is an increase in prices in all sectors, especially in services. "The costs are influenced by the very high increase in world prices, the effects of COVID-19 still persist, to which the impact of the war in Ukraine has been added. In the first half of the year, economic growth stagnated, and later it went into decline. A decrease is observed in agriculture, industry, construction, real estate services, but there is a compensatory effect in health, trade and transport. At the same time, there is a stagnation of consumption, as the purchasing power of people has decreased. However, there is an increase in export and import," said Victoria Fala.

The scientific researcher made a macro-economic forecast for the end of the current year. According to the expert, high world prices will directly influence our country, thus consumption costs will remain at a high level. "The investment attractiveness of the country will decrease, GDP will decrease by 0.5%, and inflation will remain at a high level. The population's sources of income will decrease. Production in industry will decrease by 2%, and in agriculture by 7%. At the same time, a positive evolution in foreign trade is forecast, and the other sectors will be negatively influenced due to internal and external constraints", emphasized Victoria Fala.

In the current economic situation, experts from the National Institute of Economic Research presented several recommendations. It is about: supporting socially vulnerable groups, monitoring food security in the country, implementing reforms to increase productivity, supporting the business environment, adjusting financial policy, diversifying energy supply sources and promoting efficient consumption.

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