The WB improved the forecast on Moldova's economy growth in 2017 and 2018, but slightly lowered the forecast for 2019

The WB improved the forecast on Moldova's economy growth in 2017 and 2018, but slightly lowered the forecast for 2019

06.06.2017

According to the World Bank's June Global Economic Prospects report, the World Bank expects a 4% GDP growth in 2017, instead of the previously forecasted 2.8%, and by 2018 - 3.7% instead of 3.3%. At the same time, though in its previous January report on the Global Economic Prospects WB experts predicted a GDP growth of 3.7% for 2019, now they have lowered their forecast to 3.5%. Experts of the World Bank believe that in 2017-2019 the economic growth in Moldova will be supported by consumption and fiscal policy stimulating. It is expected that in 2017, higher than expected earlier, the growth of Moldova's GDP will be achieved due to a significant increase in exports, a good harvest of agricultural products, increased consumption, increased wages, and in 2018 - due to the growth of public investment and further increase in cash transfers from abroad from the labor migrants, an increase in the inflow of foreign investment amid the improvement of the situation in the financial sector and the improvement of the business climate. At the same time, among the risks to the economic growth, the WB experts mention a possible slowdown in the implementation of the reforms in the period ahead of the 2018 parliamentary elections, as well as the possible weaker economic growth in Moldova's key partners - the EU and Russia, which could negatively affect the economic growth of our country. It should be noted that according to the National Bureau of Statistics, Moldova's GDP in 2016 increased by 4.1%, amounting to 134 billion 476 million lei at current market prices. In March 2017, the Ministry of Economy of Moldova has improved the country's GDP growth forecast for 2017 from 3% to 4.5%, while maintaining the GDP growth forecast for 2018 at 3.5%. The IMF also raised the forecast for the GDP growth in Moldova for 2017 from 3% to 4.5%. The fund's experts also improved the forecast for the growth of the Moldovan economy for 2018 - from 3.6% to 3.7%. The European Bank for Reconstruction and Development raised the forecast for the economic growth in Moldova for this year from 2.5% to 3%. At the same time, in 2018, the EBRD experts forecast a 3.5% growth of the Moldovan.

05.06.2017- InfoMarket.