IMF Forecasts Slow Down for Moldovan Economy
OREANDA-NEWS. May 06, 2014. This was stated in the final Memorandum of the IMF Mission on the results of consultations. The document notes that the Moldovan economy recovered in 2013 after the drought of the previous year, but in 2014, the economic activity will be affected by the significant slowdown in the growth and the presence of significant risks.
In 2013, Moldova's economy grew by 8.9%, mainly due to the strong recovery of agriculture and its associated industries. In 2014, it is expected to slow the growth of production volume up to 2.25%. Inflation, according to IMF forecasts, will remain at the target range of 5% ± 1.5 percentage points. Account external operations temporarily improved in 2013, but will worsen in 2014 due to the decrease in growth rates of export and the projected decrease in the financial transfers by the migrants.
The IMF experts underline that at the present time to preserve the stability of the key policy priorities it is necessary to adopt the rational economic policy measures in the pre-election period and address the factors leading to the exposure of the banking sector. To mitigate risks that may lead to reduced growth, the experts consider essential to return to the path of fiscal consolidation and continue the actions aimed at maintaining low inflation and a flexible exchange rate. According to them, consistent implementation of the national development Strategy "Moldova-2020" will play a key role in the ensuring economic development.
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