The experts of the International Monetary Fund (IMF) who had been in Moldova on a visit on April 22-30 established that the Moldovan economy strongly recovered from the drought-related contraction of 2012, but activity will significantly slow down in 2014 and considerable risks exist. The IMF forecasts a growth rate of over 2% for 2014. The experts communicated their conclusions in a meeting with Prime Minister Iurie Leanca on April 30, IPN reports.

According to a communiqué from the Government, the head of the IMF mission Max Alier approved of the maintaining of the target inflation, the significant reduction in the budget deficit, the keeping of the public debt at an appropriate level and the existence of reserves of protection against possible external shocks. He underlined the importance of continuing the reforms so as to ensure macroeconomic stability. “The implementation of the structural reforms, in accordance with the objectives set in the National Development Strategy, is crucial for supporting the economic growth,” said Max Alier.

The IMF mission and Iurie Leanca shared the view that particular precautionary budgetary-fiscal and monetary-currency policies must be continued and that the normative framework in the financial sector must be improved. “The dialogue between the IMF experts and the responsible national institutions will help us to better understand the situation and to design actions for the immediate period so as to ensure the financial-economic stability and to develop a favorable investment climate in Moldova,” he stated.

The first round of post-program monitoring discussions of the Moldovan authorities with the IMF mission led by Max Alier took place between September 18 and October 1, 2013.