Since November last year, we have seen signs of revival of the economy, said Minister of Economic Development and Digitalization Dumitru Alaiba. According to the deputy prime minister, after a collapse caused by the war in Ukraine, the economy of the Republic of Moldova has started to gain momentum at the expense of private investments and the increase in industrial production. Dumitru Alaiba said that the decrease in energy charges and the lowering of bank interest rates contribute significantly to the economic recovery, IPN reports.
The minister noted that an economic recovery has been witnessed lately. The Moldovan entrepreneurs do not hesitate to launch new businesses and industrial production has increased.
“The time for the economy has not been the best until recently, but what is good is that starting with November last year, we have seen more and more signs of revival. Private investments, investments made by Moldovan companies, in the first quarter of 2024 grew by 12% compared to the previous period. It is the first increase since the beginning of the war. The industry in January-February was up 10% compared to the same period last year. Again, the industry’s first growth since the start of the war. Lending for investments is on the rise,” Dumitru Alaiba stated in the program “Emphasis on Today” on TVR Moldova channel.
According to the official, there are several factors that encourage economic growth, including the reduction in energy charges and the decrease in bank interest rates. The European Union remains the main market for Moldovan products, accounting for over 65% of the total exports.
“Inflation has fallen significantly. Interest rates at banks have dropped considerably. Energy charges, which are an important component for the economy, have normalized. Farmers are massively turning to the markets of the European Union. We have a very fast, unprecedented growth with regard to particular fruit. In the case of other fruit, it’s slower, but that’s how it is at the beginning. But we are aware that the Republic of Moldova needs much more than that 0.7% GDP growth recorded in 2023,” said the Minister of Economic Development and Digitalization.
According to the National Bureau of Statistics, the Republic of Moldova in 2023 had an economic growth of 0.7% compared to 2022. For comparison, Romania in 2023 recorded an economic growth of slightly over 2%, which Ukraine, which is at war, had an economic growth of 5.3%.
