Bbabo NET

Economics & Business News

In 2021, the economy of the Republic of Moldova recovered from the recession

Moldova (bbabo.net), - The rapid economic recovery this year after the recession in 2020 can be called the most important positive event of the 2021 economic year. predicted at the level of 8-10%. We see a recovery in investments, primarily private ones, ”said Stas Madan, Expert Grup's expert in the field of economics, commenting on the development of the economic situation last year, ipn.md reports.

Another element that Madan pointed out was the increase in tax revenues and the strengthening of the budget. “The dynamics of revenues to the national public budget in 2021 was quite good, which made it possible to finance important items of expenditure,” the expert noted.

One of the elements - a situation that is less satisfactory - is the budget deficit, which is “serious” and tends to become the “new normal” for the Republic of Moldova as well.

“Although we understand that emergencies require emergency measures, this situation will need to be closely monitored in the coming period, including in the light of servicing public debt. In 2022, we will have a very significant budget deficit exceeding 15 billion lei, ”Madan stressed.

Another not the most positive moment is the postponement to 2022 and, accordingly, the non-launch in 2021 of a number of important reforms, such as the territorial-administrative and others.

Despite the fact that in 2021 the economy of the Republic of Moldova largely recovered from the recession, thanks in part to the very successful results of Moldovan agriculture, the authorities failed to rectify the social situation in the country. The decline in support for the PDS according to the survey results reflects the social problems existing in Moldova.

“Taking into account the promises made by the Party of action and solidarity, and the high expectations of citizens, the situation is not developing the way people would like,” said Vyacheslav Berbeka, an expert from IRSI Viitorul.

“We understand that the situation cannot be changed overnight, that problems that have existed for many years cannot be quickly resolved. Achieving good results takes time, as well as human and financial resources. But the residents of the Republic of Moldova do not want to wait any longer, because they have been waiting for 30 years. And we remain in the same place - in extreme poverty. A decline in living standards (against the background of economic growth, - ed.) Due to an increase in the tariff for natural gas and food prices, a decrease in the purchasing power of the population are one of the explanations for the decline in support for the PDS according to the survey results at the end of 2021, ”explained Berbek.

In 2021, the economy of the Republic of Moldova recovered from the recession