Moldova is going through one of the most difficult economic periods in recent decades: the economy is now officially in recession, - Veaceslav Ionita
The economic expert said this, commenting on the latest data from the National Bureau of Statistics on the economic development of Moldova. According to him, official data confirms the beginning of a recession: GDP has been declining for 2 quarters in a row. "Economic stagnation in 2024 with a slight growth of 0.1% is only a symptom of a much more serious problem: over the past 5 years, the total economic growth has amounted to only 0.4%, which is an alarmingly low level, comparable only to the period immediately after the collapse of the Soviet Union," the expert said. He believes that this recession is not just a temporary economic downturn, but the result of a systemic collapse of the main sectors of the economy. In particular, agriculture is in crisis (-14.6%) - the industry's losses are estimated at 7 billion lei, which directly hampers farmers' incomes and the economic stability of rural regions. Industry is in decline (-3.4%) - this decline resulted in losses of 3 billion lei, which indicates a deep crisis in the manufacturing sector. There is a decrease in employment (-3.7%) - 40 thousand jobs were lost in the real sector of the economy, while in the public sector there were 7 thousand more, which indicates the failure of economic policy. Exports also collapsed (-12.2%) - losses amounted to $ 493 million, which hinders Moldova's ability to maintain its competitiveness in foreign markets. According to the expert, these factors create a "perfect storm" that calls into question the economic future of Moldova. Veaceslav Ionita believes that excessive dependence on foreign aid and international loans has not led to growth, but only to the accumulation of debt of more than 2.6 billion euros. "If we add to this almost 800 million euros in grants, we get an injection of 3.4 billion euros in grants and loans over the past 4 years without tangible results in the economy. Faced with this harsh reality, the government continues to rely on promises of external financing without a clear strategy for economic recovery. However, as reality shows, money cannot compensate for the lack of a clear economic strategy. Without deep reforms and concrete steps to stimulate domestic production, reduce dependence on imports and support local entrepreneurs, Moldova risks falling into a vicious circle of economic stagnation and decline," the expert emphasizes. At the same time, Veaceslav Ioniță is sure that the recession is only the tip of the iceberg, and the main question is whether we are ready to avoid collapse or will be watching the economy slowly decline. // 18.03.2025 — InfoMarket.
