MEGA - Moldova Economic Growth Analysis № 15 / 2016
MEGA - Moldova Economic Growth Analysis № 15 / 2016

Author(s): Adrian Lupuşor, Alexandru Fală, Ana Popa, Dumitru Pîntea, Vadim Gumene, Valeriu Prohniţchi
Subject(s): National Economy, Economic policy
Published by: EXPERT-GRUP Centrul Analitic Independent
Summary/Abstract: Although the 2016 economic year was more favorable than that of 2015, it confirmed that the Moldovan economy's main problem remains its poor competitiveness. After the recession of 2015 (-0.5%), the Gross Domestic Product (GDP) registered a marginal recovery in 2016 with a growth estimated at 3%. However, this improvement was dictated by two sectors where growth is likely to be unsustainable: Agriculture and Services. Agriculture registered a compensating increase after the 2015 drought; but the effect of a low comparison base will dissipate in 2017 and, on the background of low investments, the sector's growth cannot be sustained. The services sector recovered thanks to a modest increase in final consumption, which was in turn boosted by an increase in wages. This advance, however, happened against the backdrop of declining labor productivity and investments in fixed capital.

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