Ministry of Foreign Affairs and European Integration of the Republic of Moldova

Embassy of the Republic of Moldova to the State of Israel

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Economy

Socio- economic operatives of Republic of Moldova
(according to available data on 30.04.2019)

In 2018, the Gross Domestic Product, increased by 4% and amounted 190 billion MDL. Gross added value that was created within the activity of ‘Wholesale trade and retailing, transportation and storage, hotels and restaurants’, had a valuable contribution to the economic increase, providing a proportion of 29% of GDP growth; then comes the ‘Construction Industry’-  with a proportion of 28% of the GDP growth; Industry registered a proportion of 16% of the GDP growth. These activities were the weightiest in the year 2018.


Appearance of signs of inflationist pressures. In March 2019, the inflation rate was about 2.2% compared to December 2018, marked up an increase of 1.9 p.p. in comparison to the inflation rate of the same period of year 2018. The Annual inflation rate was about 2.8%, being below the target level established by the National Bank of Moldova (5%+/-1.5%).


The Moldovan leu experienced a soft depreciation in comparison to US dollar and increased in comparison to Euro. From the beginning of 2018, the national currency recorded a depreciation of 1% in nominal terms, in comparison to US dollar (from 17.14 lei 1 US dollar on 01.01.2019 to 17.31 lei on 31.03.2019). The Moldovan leu experienced a growth of 0.5% if compared to Euro. The stock of backup exchange assets of NBM on 29.03.2019 was about 2824.3 million US dollars, recording a decrease of 5.7%, if compared to the recorded level at the end of year 2018 and of 1.8% compared to the situation on 30.03.2018.


At the end of March 2019, the M3 money supply was about 82 billion MDL and recorded an increase of 6.5% if compared to the end of March 2018. The progresses of money supply were largely conditioned by the increase of 14.5% of the sight deposits. The lending situation is progressively improving: the new granted credits recorded an increase of 32.4% in March month of 2019 in comparison to March month of year 2018, which recorded an increase of 22.4%.


The first quarter of year 2019 ended in a deficit of 355.5 million MDL In January- March 2019, to the national public budget were accumulated financial resources of 14.1 billion MDL (by 6.3% more than in January- March of 2018) and expenses of – 14.5 billion MDL (an increase of 19.2%). The largest proportion of expenses are for social security and the smallest proportion- for environmental security.


The total of state debt managed by the Government on 31st of March 2019 recorded a value of 51.8 billion MDL, an increase of 1.8% compared to the same period of year 2018.
State internal debt had increased by 2.8% but the state foreign debt, decreased by 4%. Even if the indebtedness of the country seems being at a high level, it lays under the risk indicators mentioned in the Program of the medium term state debt management. (2019-2021).


The high reliance of the national economy on outside influences. According to primary data of the Balance of payments for 2018, the deficit of the checking account was about 10.5% compared to GDP, the transfers of individuals (income payments and personal transactions)- 16.2%, the net incurrence of liabilities to the direct foreign investments- 2.1%, The negative value of goods and services- 26%.

 

Exports of goods had a higher growth rate than imports. In January- February 2019, the exports increased by 9.1% but imports- by 3.7%. The negative trade balance amounted 356.1 million US dollars, if compared to 365.9 million US dollars in January- February 2018. The coverage of imports by exports was about 57.2%, with an increase of 2.8 p.p. than the coverage in the same period of year 2018.


Industry recorded an increase of 2.1%, in January- February 2019. Mining and quarrying recorded a growth of 29.3 %, energy sector- by 6.1% and manufacturing industry- by 0.5%.

The growth of industry was conditioned by the expansion of the Free Trade Zones’ activities, in particular the automotive industry, the growth of foreign and internal demand of domestic products, exploitation of the opportunities given by the international agreements of economic cooperation, as well as by the continuous growth of the construction industry.


The global agricultural production recorded a decrease of 2% in the first quarter of 2019, amounting 1650million MDL. Such situation evolved due to the decrease of production of livestock sector by 2.1%, which had 99% of the total of agricultural production.

 

In 2018, the investments in fixed assets had grown significantly, because of the intensification of public investments. Thus, the investments had increased by 12.3% amounting 24.2 billion MDL. The intense growth of public investments, the credit situation improvement of the national economy, as well as growth of the investments from economic agents, were factors that caused the increase of the investment activities.


The delivered goods amounted 2 million tones, recording an increase of 4.5% in January- February months of 2019
. The increase of the transported goods were documented in air transportation- 57.2%, road transportation- by 9.9%, and river freight- by 4.7%. The rail transport recorded a decrease of the amount of transported goods by 3.4%.


The domestic trade of goods and services recorded a growth in 2018, showing an increase of the consumption by population and by economic agents. The turnover of the retail trade increased by 7.6% if compared to previous year, and the data for services provided by the market to the population increased by- 10.9%.


In 2018, the gross medium income per month of an employee amounted 6446.4 MDL and increased by 13.2% in nominal terms if compared to the year 2017. In real terms, the salary had increased by 9.9%. The social workers had a monthly medium salary of 5675.1 MDL, with an increase of 14.6 if compared to year 2017, and in the real sector 6748.2 MDL, recording an increase of 12.5%.


The incomes of the population grow mainly out of the social benefits
. In 2018, the disposable incomes of the population were about 2383.1 MDL, recording an increase of 6.2% in nominal terms, if compared to data from year 2017, and in real terms- an increase of 3.1%. The monthly medium consumption expenses were about 2407.9 MDL for one person, recording an increase of 7% in nominal terms and 3.9% in real terms. Almost half of the income of the population are spent for food products.

The medium of monthly pension on 01.04.2019 was about 1793.95 MDL and increased by 17% compared to the data from the same period of year 2018, in nominal terms. In 2018, the minimum of subsisting was about 1891 MDL, recording an increase of 1.5% compared to the data of year 2017.


The country unemployment rate (the proportion of unemployed people from those who are able to perform a job) in 2018 recorded 3%, recording a decrease of 1.1 p.p. compared to the data of year 2017. In January- March 2019 were registered 8661 unemployed people at the employment offices, with a decrease of 17.2% compared to the data from year 2018.