untitled design

Moldova expects zero growth in 2022 due to the war

Moldova’s government revised its economic outlook for 2022 to zero from a previous estimate of 0.3 percent growth, due to the negative effects of the war in neighboring Ukraine and rising energy prices worldwide, the economy ministry said.

Last year Moldova’s growth rate reached almost 14%.

The ministry highlighted that estimates for 2022 inflation have risen to 29.5% from the previous 21.9% and the local currency has weakened to 19.14 lei per dollar from 18.81 lei.

The country expects industrial production to increase by 1.5% while the agricultural sector will shrink by 18% due to the drought.

The ministry said the government will discuss amendments to the 2022 budget at its meeting on Wednesday, due to economic performance being worse than previously expected.

Earlier, Moldova had appealed to the International Monetary Fund for help as it took on the extra financial burden of supporting Ukrainian refugees who found safety on its borders, who now number around 89,000 in a country of just 2.6 million.

Source: Capital

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular