Moldovan economy is going through a difficult period and in 2022 the economic growth is expected to stagnate – Dumitru Budianschi.
Minister of Finance stated this while speaking before the MPs during the consideration of the opposition's initiative to pass a vote of no confidence against the politicians of the Ministry of Finance. The head of the Ministry reminded that the inflation in the country is rising, and in May, its annual level (for the last 12 months) reached 29%, and there is a risk of stagflation. According to him, most Moldovan citizens are struggling to cope with the record rise in prices for energy, utilities and a significant rise in food prices in this situation. Real incomes of the citizens in these conditions are falling and the business faces many problems. And the downturn in agriculture due to the drought can be superimposed on this situation. All these phenomena have had a strong impact on the population and the real economy. The head of the Ministry of Finance said that some political forces speculate on this situation and try to blame the government for all the troubles. According to him, the accusations of the opposition are unfounded and are of a political and speculative nature. Dumitru Budinschi demonstrated with specific figures that economic recession and inflation growth is observed in developing as well as developed countries, and the IMF experts decrease their forecasts for GDP and increase the inflation forecasts. There is a trend of deterioration at the global level, and countries with weak economies suffer more. The Finance Minister said that the real reasons for the economic decline and rising inflation in Moldova are a consequence of phenomena beyond the control of the country's authorities, and the current crisis is caused mainly by external factors, with the energy crisis and the consequences of the war in Ukraine superimposed on them. Dumitru Budianschi pointed out that Moldova is almost entirely dependent on energy imports, with gas from a single source, and the previous authorities had not taken the necessary measures to reduce this dependence in previous years, and now the citizens felt even more the consequences of such a situation. He also reminded that against the backdrop of the war in Ukraine, traditional supply chains were interrupted and there were problems with reorienting supplies to other markets. The head of the Ministry of Finance stressed that the decline in economic growth and the sharp rise in inflation have global and regional causes which the authorities can't influence directly, while rising inflation is the most significant impact of the crisis, and it hits the poorest segments of the population. Dumitru Budianschi spoke in detail about the actions of the authorities to overcome the current difficult situation. // 01.07.2022 – InfoMarket
