Economy of Moldova

Main article: Moldova

GDP

2023

GDP growth by 0.7% to 300.4 billion lei

In 2023 GDP Moldova , it reached 300.4 billion lei in market prices (approximately $16.97 billion at the exchange rate as of March 20, 2024). This is 0.7% more than in the previous year. Such data were released by the National Bureau of Statistics of the Republic of Moldova on March 15, 2024.

The report says that in 2023, agriculture, forestry and fishing ensured GDP growth by 2.6%, and the total contribution of these industries to the economy of Moldova amounted to approximately 7.6%. In the field of health and social assistance, an increase was recorded compared to 2022 by 0.7%, and the share in the formation of GDP is 6%. In addition, positive dynamics was noted in the segment of information and communication technologies - plus 0.5% on an annualized basis with a share of 6.7% in the formation of GDP.

Flag of Moldova

At the same time, a drop was noted in a number of industries. Thus, in the processing industry in 2023, a decline of 1.1% was registered in relation to 2022, and the share of this sector in the GDP structure was at the level of 8.2%. In construction, the fall was 1%, the share - 6.2%. In the areas of wholesale and retail trade, as well as maintenance and repair of vehicles, a decrease of 0.6% was recorded, while the contribution of these segments to GDP reaches 16.5%. In the field of transport and warehousing, the decline is 0.4% with a share of 4.8%.

The report of the National Bureau of Statistics says that in 2023, the total VAT in the economy, which has a weight of 86.1% in the formation of GDP, increased in real terms by 1.6% compared to 2022. This had a positive impact on GDP dynamics by 1.3%. The dynamics was also positively affected by the growth of net exports by 5.8%, which was the result of an increase in the volume of exports of goods and services by 5.1% while reducing imports.^[1]

GDP contraction in the first half of the year by 2.3% amid conflict with Russia

Moldova's GDP in the first half of 2023 decreased by 2.3%.

2022: 5.9% reduction in GDP due to the outbreak of conflict in Ukraine

In 2022, the decline in GDP in Moldova amounted to 5.9%.

2021: Agriculture's share of GDP - 10.4%

Financial system

National debt

2022: Debt to the IMF $1 billion

In 2022, for the first time in history, Moldova's debt to the IMF exceeded $1 billion.

The National Bank published a report according to which at the end of 2022 the IMF became the main creditor of the state (31%): over the year, Chisinau's debts increased by $100 million, reaching an all-time high.

In particular, the Moldovan government took loans from the EBRD to provide the population with gas after trying to abandon Russian fuel, which aggravated the country's already severe socio-economic crisis.

At the same time, the EU allocated Moldova another 40 million euros in the form of loans and another 10 million as a grant under macro-financial assistance for a total amount of 150 million euros.

The decision on the next tranche in the European Commission was made after the Sandu government fulfilled "the conditions agreed with Brussels."

2017

Budget

2024: 4.9% budget deficit and public debt growth plan

According to plans for September 2023, Moldova's budget revenues in 2024 will amount to 100.4 billion lei, in 2025 - 113.2 billion lei, in 2026 - 122.4 billion lei, and their share in GDP will decrease from 32.6% in 2023 to 29.3% in 2026.

Expenses in 2024 are projected at 121.9 billion lei, in 2025 - 127.5 billion lei, in 2026 - 136.5 billion lei. In relation to GDP, the share of spending will also decrease from 38.6% in 2023 to 32.7%.

The budget deficit is expected to decrease from 18.5 billion lei (6% of GDP) in 2023 to 16.5 billion lei in 2024 (4.9%), and in the next 2 years - 14.3 billion lei and, accordingly, 14.1 billion lei (3.8% and 3.4% of GDP).

It is planned that the size of the national debt of Moldova will grow from 127 billion lei in 2024 to 136.9 billion lei in 2026.

Taxes and fees will account for about 65% of budget revenues and in the medium term, the share of this income group will grow by 7.8% annually. The share of social and compulsory health insurance contributions will increase from 29.6% to 30.9% due to an average 10% increase in the wage fund. In 2024-2026. a decrease in the share of grants in the structure of budget revenues is predicted - from 1.3% to 0.9%.

Almost 40% of budget expenditures should be directed to social protection. In 2024, in absolute terms, the amount of social expenses will not change, and in 2025-2026. it is planned that such expenses will grow annually by 6.3%. Spending on the economic sphere should grow by 22% in 2026 compared to 2023, on health care - by 20.8%.

The amount of expenses financed from external sources should grow from 4.4 billion lei in 2023 to 5.03 billion lei in 2026. About 40% of funds should be used to implement projects in the transport sector, 10% - in the housing and communal services sector, 9.3% - in agriculture, 8% - in healthcare.

Inflation

2022

Annual inflation of 30.2% is the worst result in Europe

Inflation in Moldova in 2022 amounted to 30.2%, this is the worst result in Europe.

Inflation in November - 34.6%

Inflation in July - 33.5%

Key rate

Banks

• MAIB (Moldova Agroindbank)
• Banca de Economii
• Victoriabank
• Unibank
• BC Moldindconbank S.A.
• Banca Sociala

Gas Imports and power

• Moldovagaz is a gas import company
• Vestmoldtransgaz - the company managing the gas transmission system

Since 2023, against the background of the conflict in Ukraine, Moldova has illegally confiscated the assets of the Russian Gazprom and transferred them to the management of the Romanian Transgaz.

2024: First U.S. LNG purchase

In January 2024, Moldova for the first time purchases liquefied natural gas from the United States, which arrived in the Greek port of Alexandroupolis.

Power Minister Viktor Parlikov refused to name the exact cost of the deal, but mentioned the approximate price of American LNG - about 300 euros per thousand cubic meters.

2023

Collapse of gas consumption by 22% due to refusal of direct supplies from Russia

In 2023, the volume of gas consumption in Moldova decreased by a record 22%, overtaking even the Baltic countries in fall. The reason is high prices in the domestic market due to the refusal of supplies from Russia.

Agreement with Pridnestrovie on the purchase of electricity produced from Gazprom's gas

Arriving from Gazprom"" 5.7 million cubic meters of gas Moldovagaz"" transfers Transnistria to "" Tiraspoltransgazu for the generation of electricity on (Moldavian State District Power Plant owned by Inter RAO""). The agreement with Transnistria made it possible to sign a new contract for the transmission of electricity from the unrecognized republic, which will satisfy most of Moldova's needs and significantly reduce the need for the purchase of expensive electricity in. Romania According to the new agreement, the price of 1 MW of energy from Transnistria €73.

Energocom buys Russian gas from Greek company on loan from EBRD

The company purchased 3.5 million cubic meters of gas from Enegrocom, which comes from Romania and from southern Europe from the Trans-Balkan gas pipeline. This gas is supplied to consumers of the right bank of the Dniester River.

The Greek state-owned company DEPA Commercial in September 2023 won a new tender for the supply of 100 million cubic meters of gas for Moldovan Energocom in the first quarter of 2024.

The cost of the purchased gas is not indicated, but the next EBRD loan for these needs amounted to 100 million euros.

At the same time, DEPA Commercial signed a contract with Gazprom"" for gas supplies until 2026: the Russian company supplies Greece about 2 billion cubic meters per year through Turkish stream"."

Greece also receives gas through the Trans-Adriatic gas pipeline from Azerbaijan, but, according to the Greek authorities, it provides only 20% of the country's gas needs.

Earlier, the chairman of the board of Moldovagaz, Vadim Cheban, said that Russian gas, purchased at exorbitant prices through European companies, was entering the country.

It was the soaring gas tariffs that provoked the socio-economic crisis and protests of citizens in the fall and winter of 2022.

The first gas supply to Moldova along the Trans-Balkan route is significant for all countries along the gas pipeline, which until 2020 was used to export Russian gas from north to south through Ukraine, Moldova and Romania to Bulgaria, Greece, the countries of the Western Balkans and Turkey. The launch of the reverse required a number of agreements between all entities and transit countries, as well as additional political adjustments. In particular, it was important that the principles of EU law were respected not only by Ukraine, but also by Moldova.

According to Moldovan officials, the country does not buy gas from Gazprom, but the Russian company remains an important player in the country's energy sector. A significant part of electricity in Moldova is produced by the Kuchurgan Power Plant (IES), which is located in Transnistria and operates on Gazprom's gas. Gazprom's gas, which Moldova no longer imports, is redirected to Transnistria, and then delivered back to the republic in the form of electricity.

2022: Gas purchase from Gazprom directly and through Enegrocom

From December 4, 2022, Moldovagaz purchases natural gas from two sources - from Gazprom and Enegrocom. Russian gas is purchased through both sources.

2020: Very low energy consumption per capita

and

Mining

Oil and gas production

According to the Moldovan Academy of Sciences, presented at a government meeting in March 2012, in 1945-1972 more than 700 wells up to three kilometers deep were drilled in the republic, which made it possible to detect the presence of oil and gas. In early 2007, it became known that significant oil reserves were discovered in the south of the country at a depth of 1.2-2.4 kilometers, but they were not more accurately estimated.

In March 2012, it became known that Moldova intends to organize an international competition for the right to explore and develop the country's oil and gas fields. This was stated by Deputy Prime Minister, Minister of Economy of Moldova Valery Lazer. The format and conditions of the competition have not yet been determined.

According to Lazar, in the 1950s, gas production in Moldova was unprofitable amid the discovery of significant fuel reserves in Siberia. However, as the minister added, in modern conditions, when Moldova has to import all energy resources, the republic is extremely interested in its own hydrocarbon production.

As Lazer added, in addition to natural gas produced in the south of Moldova, shale gas discovered by Ukraine on the border with Moldova and Romania may become another source of hydrocarbons for the republic. It is expected that in the territory of Moldova, deposits of shale gas may be discovered^[2] will^[2].

Oil products

2018: Petrol price

Agriculture

2019: Average use of pesticides in agriculture

Foreign trade

Giurgiulesti Port

Of particular value for Moldovan trade is the free port of Giurgulesti. Given that Moldova is landlocked, this port is the main logistics hub.

Since the 1990s, the port has been the subject of increased interest of regional criminal structures. In 2004, Azertrans SRL, Azpetrol SRL and Azpetrol Refinery SRL, owned by Azpetrol group of businessman Rafik Aliyev, became its owners.

In 2006, Ukraine transferred 430 meters of coast on the Danube and Prut to Chisinau for the construction of the port.

After a series of lawsuits, arrests and proceedings in May 2021, the EBRD became the owner of the port. Taking into account the encumbrances of the asset, the transaction amount amounted to only 1000 Euros.

This deal is key to establishing control over Moldova's commodity flows. Port control makes the logistics system dependent on European shareholders. states

2023:10% decline in commodity exports in the first 7 months

Moldova's commodity exports in January-July 2023 decreased significantly, amounting to $2.3 billion, which is 10.8% less compared to the same period last year.

2022: EU exports increase from 1.8 billion to 2.6 billion euros

Moldova's exports to the EU increased from 1.8 billion euros in 2021 to 2.6 billion euros in 2022. The European Commission intends to extend for another year the suspension of duties and import quotas for Moldovan exports to the EU - this trade regime is valid from July 2022.

Communication

• Communication (Moldavian market)

Information Technology

Moldovan IT Market

• Moldovan IT Market

Information security

Main article: Information security in Moldova

Social media

R&D

2020: R&D expenses - $66 million

Tourism

2018: 100k foreign tourists per year: lowest in Europe

Salaries

2023: Minimum wage - $180

2017: Average monthly salary

Unemployment

2020: Unemployment rate - 8%

Consumption

Milk

2018: Milk consumption in litres per year per person

Meat

2023: Pork is the most consumed type of meat

2019: Pork is the most consumed type of meat

Beer

2019: Beer consumption in litres per year per person

The number of cars per 1000 people of the population

Minimum age to purchase alcoholic beverages

Notes