Economic Growth in Moldova: Slow Progress and Uneven Performance

Despite a 1.9% year-on-year increase in GDP and a 1.1% month-on-month increase in the first quarter of 2024, Moldova’s economy has remained relatively stagnant over the past five years with intermittent disruptions caused by various crises. The shock induced by the war in Ukraine in early 2022 seems to have stifled the country’s economic progress.

Key sectors such as manufacturing, utilities, agriculture, and HoReCa experienced double-digit growth rates, while others like constructions and services to households showed modest yet positive performances. Some sectors like transport and logistics had a negative impact on the overall GDP growth. Overall, the gross value added increased by 3.4% year-on-year, with net taxes making a negative contribution.

Despite this growth, Moldova’s economy has remained relatively stagnant over the past five years with intermittent disruptions caused by various crises. The shock induced by the war in Ukraine in early 2022 seems to have stifled the country’s economic progress.

Final consumption remained nearly flat while gross fixed capital formation advanced by 4.8% year-on-year. The stock of inventory contracted, negatively impacting the total domestic demand. However, exports of goods and services contracted by 4.1% year-on-year, contributing to the overall GDP growth.