Moldova’s economy will experience a contraction in 2020, assuming a gradual recovery from the third quarter of the year onwards. In addition to the temporary shut-down of key economic activities and the related income loss, the impact of the outbreak in Moldova will primarily be associated with decreasing demand for exports due to a disruption of global and regional supply chains and a reduction of travel and tourist arrivals, as well as remittances, IPN reports, quoting a press release of the World Bank.

According to World Bank’s Spring 2020 Economic Update for Europe and Central Asia, if the outbreak persists beyond the second quarter of 2020, the impact of COVID-19 will have more severe effects resulting in a deeper recession and long-lasting losses in jobs and production. The economy is expected to recover in 2021 as the global economy rebounds in the aftermath of the pandemic.

The World Bank is finalizing a program of activities to help Moldova manage and mitigate the impact of the crisis, including through the US$57.4 million in a new emergency project that aims to support emergency health sector needs to fight pandemic, as well as support households and workers losing jobs through social assistance benefits.

Decisive policy measures that prioritize investments in health care systems and provide safety nets for people, especially the most vulnerable, are critical to mitigating the impacts of the COVID-19 pandemic in Europe and Central Asia, says the Spring 2020 Economic Update for the region.