After the economic, currency and banking shock of 2015-2016, the Republic of Moldova became more vulnerable than ever. Even if the authorities maintained it floating and avoided a system catastrophe, Moldova no longer possesses that safety cushion that offset the shocks in 2015-2016, shows a study carried out by the independent think tank “Expert Grup” and Friedrich-Ebert-Stiftung, IPN reports.

The study says the theft of the US$1 billion didn’t result only in the de-capitalization and failure of the three important banks, one third reduction in the foreign exchange reserves and rise in the state debt, but also in the significant fissuring of the country’s economic and financial security. This became vulnerable to a wide range of fiscal, currency and social shocks.

“The authorities’ inability to prevent the banking frauds and then to avoid the shifting of the burden onto the people worsened the omnipresent perception in the civic and business communities of the endemic corruption and capturing of the state by persons with obscure interests,” says the study.

The experts also noted the more visible distancing by the government from society, which is revealed by the more pronounced discrepancies between the statements of the government representatives and the people’s perceptions.

The study also shows that Moldova entered a period of anemic economic growth following the diminution of consumption, while the alternative and sustainable growth resources haven’t been yet activated.

For the next few years, it is anticipated an average GDP growth of only 1-3%. Though this is an acceptable level for the developed states, it is very low if we take into account the fact that the Republic of Moldova needs a growth of about 7-8% to catch up with the countries of the region in a reasonable timeframe.