GDP, current US$ billion
GDP per capita, current US$
School Enrollment, primary (% gross) (2016)
Life Expectancy at birth, years (2015)
Moldova is a small lower-middle-income economy. Although the poorest country in Europe, it has made significant progress in reducing poverty and promoting inclusive growth since the early 2000s. The economy has expanded by an average of 5% annually, driven by consumption and fueled by remittances. The latter account for a quarter of GDP, among the highest shares in the world.
European integration has anchored the Government’s policy reform agenda, but reforms that are good on paper have yet to materialize. A vulnerable political system, a polarized society, an adverse external environment, a skills mismatch in the labor market, and climate-related shocks are economic challenges.
Transparency, accountability, and corruption are crucial concerns. Business confidence is low and the macroeconomic framework remains vulnerable, while external budget support, based on an agreement with the IMF, has a high level of conditionality. Continuous economic stabilization, advancement of key economic reforms, and creation of a rule-based environment for businesses are key goals.
With parliamentary elections due in 2018, the Government has a narrow window of opportunity to implement ambitious reforms in public administration and improve the investment climate.
Moldova faces other important challenges. Largescale emigration, combined with decreasing fertility rates, has alarmingly reduced the population and hastened the pace of aging in Moldova, putting pressure on the pension system and limiting the country’s long-term competitiveness.
Last Updated: Oct 06, 2017