GDP, current US$ billion
GDP per capita, current US$
Life Expectancy at birth, years (2016)
Moldova is a small lower-middle-income economy. Although it is the poorest country in Europe, Moldova has made significant progress in reducing poverty and promoting inclusive growth since the early 2000s.
The economy has expanded by an average of 5 percent annually, driven by consumption and fueled by remittances. The latter account for a quarter of GDP, among the highest share in the world.
European integration has anchored successive governments’ policy reform agendas, but reforms that are good on paper have yet to materialize. A vulnerable political system, polarized society, adverse external environment, and skills mismatch in the labor market, along with climate-related shocks, are Moldova’s biggest economic challenges.
Transparency, accountability, and corruption are crucial concerns. Business confidence is low, and the macroeconomic framework remains vulnerable. External budget support, based on an agreement with the International Monetary Fund, has a high level of conditionality.
Continued economic stabilization, the advancement of key economic reforms, and the creation of a rule-based environment for businesses are the country’s key goals.
Moldova’s large-scale out-migration, combined with decreasing fertility rates, has led to an alarming decline in the population and increased the share of elderly people. This puts pressure on the pension system and limits the country’s long-term competitiveness. In the near term, the formation of a new government and local elections will dominate the political agenda while important reforms may stumble.
Last Updated: Apr 10, 2019