Despite some progress, the Republic of Moldova faces challenges such as low productivity in non-agricultural sectors, over-reliance on declining remittances, and demographic changes characterized by a shrinking and ageing population. In this context, the country urgently needs to transition to a new growth model. The conclusions are contained in the World Bank's new Country Report on the Economy of the Republic of Moldova, which outlines the main reforms needed to accelerate economic growth and align with EU standards, IPN reports.
According to the recommendations included in the report, in order to achieve sustainable growth and catch up with EU living standards, the country needs to focus on increasing productivity, accelerating public investment while improving competitiveness, the process of reforming public institutions, and promoting job creation in various sectors.
"Moldova has made significant progress on its economic path, moving from a low-income to an upper-middle-income economy. Targeted reforms are essential for Moldova to ensure the sustainability of this growth, as well as the continuity of its EU integration path", Inguna Dobraja, World Bank Group country director for Moldova, was quoted in a World Bank press release.
Deputy Prime Minister Dumitru Alaiba, minister of economic development and digitization, said sustainable economic development continues to be the ministry's priority, and the private sector plays a crucial role in this effort. It is therefore working to transform Moldova into a country where doing business is easy and attractive. According to Dumitru Alaiba, accession to the European Union offers a great opportunity for the country's economy, a chance to grow and develop alongside member countries, benefiting from access to a vast and stable market, investment opportunities and technological development.
The World Bank emphasizes that sustained implementation of reforms is essential for Moldova's social and economic transformation and sustainable growth. The path towards EU integration offers a significant opportunity for Moldova to unlock its growth potential and align with EU social and economic standards.
Since 1992, the World Bank has allocated over USD 2.1 billion to implement more than 70 operations in Moldova.
