GDP, current US$ billion
GDP per capita, current US$
Life Expectancy at birth, years (2018)
Moldova is a small lower-middle-income economy. Although it is among the poorest countries 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 4.6 percent annually in the past 20 years, driven by consumption and fueled by remittances. The latter account for 10 percent of GDP.
A closer integration with Europe has anchored successive governments’ policy reform agendas, but reforms that are good on paper face implementation challenges. A vulnerable political system, a polarized society, low productivity, demographic challenges, skills mismatches, and a high vulnerability to both climate-related and external shocks are Moldova’s biggest economic challenges.
In the near term, the new Government, supported by a parliamentary majority established in March 2020, has the task of taking the country through the COVID-19 crisis without reversing hard-won structural reforms while regaining trust among citizens and international partners, combating corruption, and completing the unfinished reform agenda.
Continued economic stabilization, improved living standards, 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 available labor force and the country’s long-term competitiveness.
Last Updated: Apr 16, 2020