The people’s welfare during the next few years can be negatively affected by the stagnation of the foreign sources of income, transfers from abroad, and the domestic ones, salaries. The diminution of the transfers from abroad in 2019 can mean the attainment of a growth limit for this source of income that is caused by the exhaustion of the human resources involved in migration processes, experts of the Independent Think Tank “Expert-Grup” say in a publication entitled “Economic Reality: top ten economic events of 2019 and top ten challenges for 2020”.
According to the experts, the slowdown of the economies where Moldovan migrants work is a factor that can negatively affect the transfers from abroad next year. The record pay rise paces in 2018 and 2019 can be tempered owing to the budgetary constraints and the slower labor productivity growth. This risk to salaries is rather a medium-term one as additional sources can be used in 2020 to stimulate the rise in pays.
The experts noted the investment projects planned to be financed with foreign funds in 2020 could be implemented inadequately. There is a risk the public funds will be used inefficiently and will be immobilized in projects that lose topicality and importance for the economic development and improvement of living standards. At the same time, until fiscal space is allocated for the exiting capital investment projects, new projects that would generate important changes cannot be launched.
