Year 2022 one of most difficult years for Moldova's economy - analysis

Chisinau, 27 April /MOLDPRES/ - The 2022 year was one of the most difficult years for Moldova’s economy, as it was marked by an economic decline of 5.9 per cent and a record inflation of 28.7 per cent. These conclusions are contained in the publication, Tendinţe în economia Moldovei (Tendencies in Moldova’s Economy), unveiled by the National Institute of Economic Researches (INCE) today.    

According to the quoted source, the conflict in Ukraine had a major impact on the economic evolution in Moldova, as it brought wide regional and global implications and significantly influenced the energy market. Because of the low purchasing power of the consumers from Moldova, the government had to provide important compensations, most of them covered by foreign donors.     

An INCE representative, Viorica Popa, said that Moldova’s economy had sharply decreased in 2022, as a result of the secondary effects of the war, the energy crisis and the drought. Thus, the Gross Domestic Product (GDP) contracted by 5.9 per cent in real terms against the year before and amounted to 272.5 billion lei. The agricultural production diminished by 29.8 per cent against 2021. The volume of money transfers through banks to private people stood at 1.75 billion dollars, up by 8.6 per cent against 2021. At the same time, the overall value of the international trade of goods recorded growths of 31.3 per cent against 2021, with increases registered both in exports and imports.   

A PhD in economics, Olga Timofei, noted that, in the last year, the residents’ available revenues had registered an increase in nominal terms of 21.2 per cent, reaching 4,252 lei (over 200 euros) monthly for one person. The salaries stay the most important income source, with a share of 50 per cent, followed by the social benefits and money transfers from abroad. At the same time, the residents’ expenses grew by 22.1 per cent, reaching an average sum of 3,711 lei for one person.     

According to the survey, 2023 will be another year of major challenges for Moldova’s economy. According to the forecast exercise, made by INCE researchers, they anticipate that this year Moldova’s economy might ‘’hope’’ only for a small advancement, mostly based on a growth in the agricultural sector, in a hope of a friendlier meteorological year.    

Photo: INCE