MEGA - Moldova Economic Growth Analysis № 24 / 2023
MEGA - Moldova Economic Growth Analysis № 24 / 2023

Author(s): Adrian Lupușor, Alexandru Fală, Ecaterina Rusu, Marina Soloviova, Stas Madan
Subject(s): National Economy, Economic policy
Published by: EXPERT-GRUP Centrul Analitic Independent
Summary/Abstract: The Moldovan economy faced an unprecedented complex of shocks in 2022, but thanks to adequate crisis management and external support, it entered 2023 stronger and with good prospects for rapid recovery. Stagflation amid the energy crisis, drought and war in Ukraine required rapid and exceptional policy interventions. Thus, within a few months, the Government adopted a series of important measures that allowed the shocks to be mitigated. To support demand amid the unprecedented increase in energy tariffs, the compensation mechanism was introduced to cover part of the energy tariffs for households; to support businesses, the capitalization of the programs implemented by the Entrepreneurship Development Organization was increased; to deal with the energy crisis, for the first time in the country's history, alternative sources of natural gas and electricity were used and natural gas stocks were made to strengthen energy security; to support budgetary stability, the Government switched to financing the budget deficit, primarily from external sources, available thanks to generous support from development partners. At the same time, macro-financial stability was maintained, thanks to a prudent monetary, foreign exchange and regulatory policy, which kept the national currency stable, the banking sector well capitalized and robust, and which allowed inflation to start to decelerate towards the end of 2022.

• Details
• Contents