World Bank improves the estimation of Moldovan economy's growth up to 2.2 percent in 2016
The Word Bank (WB) has improved the estimation of Moldovan economy’s growth by 1.7 percentage points up to 2.2 per cent in 2016.
It anticipates an advance of 2.8 per cent in 2017 and, respectively, 3.3 per cent in 2018. Statements to this effect were made at a today’s news conference held at the Chisinau-based World Bank Office, informs MOLDPRES.
"We anticipate a revival of the economy in 2016, as a result of better outcomes in the agriculture. We expect the signing of an agreement with IMF in October, which will unlock the foreign financing, including that from the World Bank, which has comprised 45 million dollars for Moldova in its budget," a WB expert, Ruslan Piontkivsky, said.
According to Piontkivsky, the inflation rate will stay within the five percent target, set by the World Bank. The current account deficit will be about six percent and will maintain at the level of 2015. Against a background of high interest rates and political risks related to the presidential elections, the investments level will be low. At the same time, Moldova no longer has a low level of debt, but got closer to the countries with higher debt risk. "Also, a slight decrease in poverty, an enhancement in consumers’ trust will be recorded. The public money will be consolidated and the state budget deficit will drop under three percent, at it is at present," the expert noted.
Despite the austere situation, "the value, in real terms, of the transfers to households will be maintained."
The Ministry of Economy in last August revised upwards the figures of the Gross Domestic Product (GDP) for 2016 to two per cent, against one per cent, as the ministry forecast in the beginning of this year. GDP is estimated at 132.7 billion lei for 2016.
The economic activity was sped up in Moldova in the second quarter, backed by a dynamic consumption of households and growth in some sectors. The Gross Domestic Product increased, in real terms, by 1.8 percent in April-June, following an advance of 0.8 percent in the first three months of 2016, according to data by the National Statistics Bureau.