Poverty Reduction and Shared Prosperity in Moldova: Progress and Prospects


  • Moldova has experienced rapid economic growth over the past decade, accompanied by significant progress in poverty reduction and shared prosperity.
  • Growth was driven mainly by remittances and pensions, and to a lesser extent by higher wages in non-farm sectors rather than employment growth.
  • As one of the poorest countries in Europe and Central Asia, Moldova needs to continue its progress by addressing structural challenges.


Moldova has experienced rapid economic growth in the past decade, which has been accompanied by reductions in poverty and good performance in shared prosperity. Nonetheless, Moldova remains one of the poorest countries in Europe and faces challenges in sustaining the progress.

Download Report: Moldova Poverty Assessment 2016


The challenges for progress include spatial and cross-group inequalities, particularly because of unequal access to assets, services and economic opportunities. Moreover, strengthening the persistently weak labor markets to boost employment, especially in the non-farm sectors, is critical for sustaining progress toward the twin goals of reducing poverty and expanding shared prosperity and for addressing the problems associated with an aging population in a fiscally responsible manner.



Accordingly, ensuring the viability of the pension system and improving social assistance are necessary areas of reform, particularly in a context of fiscal pressures, the aging population, and the great vulnerability of the poor to shocks.

" Enhancing the livelihoods of small farmers is paramount, because the agriculture sector still accounts for 30 percent of employment, with an additional 24 percent engaged in low-intensity agricultural work.  "

Alex Kremer

World Bank Country Manager for Moldova



Download the Chapter on Agricultural Sector and Its Structural Transformation 



The Moldova Poverty Assessment 2016 includes three prongs of analysis: the report which explores the trends and the drivers of poverty and shared prosperity; the accompanying analyses - ‘A Jobs Diagnostic for Moldova’ and 'Structural Transformation of Small Farms in Moldova: Implications for Poverty Reduction and Shared Prosperity'.

The jobs diagnostic explores the main labor demand and supply challenges in Moldova in more detail, while the analysis of structural transformation focuses on the agricultural sector, and whether it can become a driver of progress.