Key developments and challenges

The economy is undergoing a severe contraction in 2009, as the global economic crisis has hit Moldovan exports and remittances. The industrial and construction sectors will continue to be the most severely affected. Financing the large budget deficit in 2009 will be challenging, even if expenditure is cut significantly. Maintaining macroeconomic stability in the short term will require a careful mix of fiscal, monetary and exchange rate policies, with an emphasis on the fiscal.