The economy of the Republic of Moldova has definitively exhausted its growth potential, and the pace of development has slowed down considerably, experts warn. In 2024, economic growth was only 0.1%, confirming a downward trend that lasted for a decade. The annual average of economic growth between 2014 and 2023 was 2.2%, twice as low as in the previous decade. Specialists stress that without a new economic model, based on added value, Moldova risks stagnation in the long term, IPN reports.

The conclusions were presented at a press club meeting organized by the Independent Think Tank “Expert-Grup”. Experts stressed the need to focus on policies that facilitate the transition to an economic model based on innovation and high value-added products.

"We must rely on policies that lead to the transition to a new model of economic growth," said Adrian Lupușor, executive director of “Expert-Grup”.

During the event, it was proposed to optimize state support for entrepreneurs by reorienting government programs towards investments that generate high added value.

The importance of developing a functioning capital market that offers financing alternatives for companies, especially those that do not have access to bank loans, was also highlighted.

"We must create competition for the banking sector by developing the capital market," said Adrian Lupușor.

Reducing the trade deficit was another central topic of the discussion. The need to support companies that implement European standards to increase their exports and promote the consumption of domestic products was emphasized.

It was also underlined the importance of increasing the volume and efficiency of public investment, especially in infrastructure, in order to stimulate economic growth.

As regards the labor market reform, the focus was placed on increasing skills and labor mobility, as well as reducing underemployment. It was noted that the labor market turned into a constraint for investments and the active employment and retraining policies were presented as a solution.

The experts concluded that the transition to a new economic model is a complex and long-lasting process, but is essential for ensuring sustainable economic growth in the Republic of Moldova.