The Gross Domestic Product of the Republic of Moldova has increased by only 0.4% in the last five years, and the maximum growth of 1% forecasted for this year essentially means economic stagnation, says Veaceslav Ionita, an expert in economic policies at IDIS “Viitorul”. According to him, “it was only worse in the ’90s, during the collapse of the Soviet system”, reports IPN.
In the show “Economic Analysis with Veaceslav Ionita”, the expert emphasized that the current recession is not an isolated phenomenon, but reflects the structural weakness of the Moldovan economy, which, for many years, has failed to overcome fundamental problems.
Over the last five years, industrial production has decreased by 1.3%, and agriculture – by 2.8%. During the same period, exports fell by nearly 500 million dollars, and the negative trend continues.
“Today we export raw materials and import finished products. From oil exporters, we have become sunflower exporters and oil importers. The agricultural balance has become negative, something that hasn’t happened for decades,” the economist declared.
The recession is also accompanied by a significant decrease in the employed population, which reached 808 thousand people in the second half of 2024 – the lowest employment level ever recorded in the Republic of Moldova.
The rate of absolute poverty – which reflects the proportion of the population that cannot ensure a minimum standard of living – has increased across the country, most notably in the south of the Republic of Moldova. If ten years ago the poverty rate in the south was 31%, today it has climbed to almost 50%. In the north, it has increased from 26.5% to 32.2%, and in Chisinau, from 7% to 11%.
“Moldova has the highest gas price in Eastern Europe, and the population has truly understood what energy poverty means,” Ionita further stated.
According to the study “The 100 Most Pressing Problems of the Republic of Moldova in 2024”, conducted by the Institute for Development and Social Initiatives (IDIS) “Viitorul”, three out of ten Moldovans live on the brink of absolute poverty, and in rural areas the poverty rate exceeds 45%.
With an inflation rate of over 10% for utilities, the citizens of Moldova pay the highest proportion of their income for basic necessities in the region. If in 2024, 63% of respondents believed that a salary of at least 15,000 lei was necessary to stay in the country, by 2025, 81% of those interviewed stated the same thing.
