Moldova must insure positive macroeconomic developments, says IMF representative

In order to make progress, Moldova must insure positive macroeconomic developments, says Johan Mathisen, the Resident Representative of the International Monetary Fund in Moldova. According to the expert, there are real possibilities for Moldova to have single-digit inflation this year, a good fiscal situation and a stable financial system, Info-Prim Neo reports. During debates, Johan Mathisen said that Moldova will manage to make progress and keep its competitive advantages only if it implements reforms, including in the area of labor and in the public and social sectors, and directs capital investment to infrastructure. Given that the salary growth rate in Moldova is similar to that in the region, the improved productivity must be based on new resources such as the labor market reform, public investment that would encourage economic growth, transfer of capital and technology through investment in new sectors, the expert says. At the same time, the IMF representative recommends the authorities to diminish the pressure exerted by the private sector on the public sector. He said that the additional fiscal incomes stemming from the temporary rise in the volume of imports must either be returned to the private sector, used to finance investment intended to improve the economic growth prospects or they must be saved to be used as investment and in reforms in the future. According to Johan Mathisen, the budget spending must be reduced by accelerating the reform of the service sector. A complex reform of the local government is needed and there should be created a well-directed social assistance system.