The World Bank Recommends Moldova to Reduce State Presence within Economy

The World Bank predicts a modest global economic increase by 2.5% in 2020 amid the potential trade war between the United States and China. This states the report on global economic prospects, published on January 8, informs mold-street.com The projected increase for the Republic of Moldova in 2020, is 3.6%, at the same level as last year, and for 2021, 2022 - by 3.8%. The evolution of the economy of our country will largely depend on the economic situation in the EU, Russia and Turkey - the main trading partners of our country. Researchers include Moldova among the countries with serious problems in the education system and skilled staff supply. At the same time, there is a significant state presence in the economy of Moldova. “State-owned enterprises are generally less efficient than private sector enterprises. In Eastern Europe and Central Asia and, to some extent, in Russia, the state’s presence in the economy remains high, and the share of state ownership is more than 10% of firms. [...] In Ukraine, companies with at least a partial presence of the state represent about 20% of the total turnover of companies and more than 25% of the assets of companies. Thus, the restructuring or privatization of state-owned enterprises makes it possible to increase productivity at the economic level in several countries of the region, if this is accompanied by effective regulations and improvements in management and the business environment,” the report says. The World Bank forecast shows that the global economy will grow by 2.5% this year. In June 2019, the Bank forecast growth of 2.6% for 2019 and 2.7% by 2020. According to the institute, in 2019 there was the weakest growth since the global financial crisis that erupted ten years ago.