The economy of the Republic of Moldova will enter a stage of stabilization only after the third quarter of 2023, after a recession of about 6%, said doctor of economy Sveatoslav Mihalache, a member of the Coalition for Unity and Welfare (CUB), IPN reports.

The population will regrettably have to get used to the current level of prices, with a slight increase of 5% next year, against a decline in consumption. The rate of inflation will remain relatively stable and will oscillate around 5%, with the risk of going under 3.5%.

The National Bank of Moldova will have to decrease the base rate and the mandatory reserve ratios for commercial banks. These decisions will influence also the interest rate at commercial banks.

Sveatoslav Mihalache considers the price of oil will oscillate between $87 and $108 per barrel and this will enable to reduce the pump prices of gasoline and diesel fuel. The decline in consumption and the contracting of business activity will lead to a decrease in the amounts collected into the budget.

The rate of inflation will enable the Ministry of Finance to attract financial resources by issuing state securities at an interest rate that is more attractive than the existing one, which will cover the budget “gaps”. This instrument is much more preferable for economic sustainability compared with the increase in taxes for business entities. The Government should also take into account the investment policies, creating opportunities for foreign investors.

“In the first quarter of 2023, the amounts collected as taxes will increase and will then decrease against the economic recession,” said doctor of economy Sveatoslav Mihalache, a CUB member.