In Moldova we focus on:
- Creating the conditions to support private sector development: The EBRD is supporting measures to improve the business environment, both through investment projects which help attract foreign direct investors, as well as through engaging with the Moldovan authorities to promote much-needed reforms. The EBRD is supporting the Economic Council, an advisory body to the Prime Minister, which brings together policy-makers and the business community with a view to enhancing the business climate. Improving the business climate is crucial for the Bank’s ability to further support the private sector and attract investment. Governance and transparency in the banking sector are particular concerns and the EBRD is working closely with the authorities to address them.
- Promoting European standards and regional integration: The EBRD is investing in projects which help Moldova develop value-added exports – especially in manufacturing and agribusiness sectors – which will be competitive in regional markets. As Moldova and the EU are moving forward towards a Deep and Comprehensive Free Trade Area (DCFTA), Moldovan companies need to adopt higher production and quality standards than those currently applied. In addition, the EBRD is financing improvements in the country’s infrastructure to develop links to neighbouring countries as well as internal transport infrastructure needed to bring domestic producers closer to their markets. The Bank is contributing to strengthening energy security and efficiency, and is helping develop the telecommunications sector.
- Enhancing commercialisation and sustainability of municipal enterprises: The EBRD is continuing to finance regional and municipal water supply companies and is looking into ways to modernize district heating and solid waste management and promote public-private partnerships (PPPs) in the sector.
As well as being a country where the EBRD works, Moldova is also an EBRD donor. Moldova contributed €1.2 million to the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund.
The EBRD’s latest Moldova strategy was adopted on 29 November 2017
- Moldova private sector diagnostic
- The EBRD's latest Moldova Strategy
- Local language translation
- Report on the invitation to the public to comment on the Moldova strategy
Moldova's policy response to the coronavirus crisis
The EBRD is monitoring Moldova's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.
EBRD forecast for Moldova’s Real GDP Growth in 2020 -5.5%
EBRD forecast for Moldova’s Real GDP Growth in 2021 3.5%
The Covid-19 crisis has had a major negative impact on the already decelerating economy. The GDP growth rate slowed to 0.9 per cent year-on-year in the first quarter of 2020, driven by a drop in exports and private consumption, although investments in fixed assets remained buoyant on the back of significant construction activity. In the second quarter, output contracted by 14 per cent year-on-year as all sectors of the economy posted large declines. The disruption of global supply chains in the early days of the pandemic hurt exports of automotive components, which are well integrated into global value chains. Domestic Covid-19 containment measures have stopped the activities of many services enterprises, while plummeting remittances in March and April hit household disposable incomes and consumer demand. Economic activity bottomed out in the second quarter of 2020.
Since May, remittances have been recovering strongly and other short-term indicators point to a gradual resumption of domestic economic activity and exports, although they remain in negative territory in year-on-year terms. GDP is forecast to decline by 5.5 per cent in 2020 followed by growth of 3.5 per cent in 2021, but risks are weighed to the downside, reflecting the uncertain path of the pandemic in the coming months.
