OREANDA-NEWS. October 10, 2013. At press conference covering the Moldova Economic Update, Ruslan Piontkivsky, country economist for Moldova, said WB projects GDP in Moldova to grow 5.5% in 2013 and 3.5% in 2014.

In the mid-term prospect, the national GDP growth is projected to make 4.5%. Let’s remind that the last macroeconomic update forecasted GDP in our country to increase 3% in 2013 and 4.5% in 2014 and 2015. The recent change in the projections is explained by two reasons, Ruslan Piontkivsky says, namely by a higher than expected growth in the agricultural sector, which made a rally after the drought of 2012, and in remittances, chiefly from Russia, the country biggest amounts of remittances have come from.

In future, these factors will become less influential on the economy of Moldova and a path of its economic growth is expected to come back to targets projected. In particular, risks exist that the demand of major Moldova’s partners will fall: A situation in the European Union has not recovered yet and an economic slowdown is expected in Russia. Besides, Moldova’s economy is still vulnerable to climate and external economic shocks and electoral cycle challenges may become one more risk to face.

According to Moldova Economic Update, in nominal terms, GDP of Moldova will make MDL 97.2 billion in 2013 and MDL 114.9 billion in 2015. Inflation rates will amount to 4.1% in 2013; 3.7% in 2014. In 2015, inflation is projected to break through the NBM boundaries to 5.7%. The WB forecasts capital investment to grow 6.1% in 2013 and 3.9% in 2014, domestic consumption increasing 6.2% in 2013 and 4.2% in 2014.

A pace of the imports growth will be faster than a pace of the export ones, making 6.4% and 5% in 2013 and 5.5% and 5.3% in 2014 respectively. A growth in remittances will decrease from 7.1% in 2013 to 5% in 2016.