Moldova Agreed 2020 Macroeconomic Forecast with the IMF

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Moldova’s gross domestic product (GDP) will decrease by 4.5% in 2020 compared to 2019, Minister of Economy and Infrastructure Sergiu Railean said in a video conference with the head of the IMF Mission for Moldova Ruben Atoyan. The discussion took place as part of the two-week (until July 22) remote work of the Fund’s Mission. His experts, in discussions with representatives of the Moldovan leadership, are tackling a new three-year program of cooperation between the IMF and the government and the National Bank (NBM), reports. The financial component of the program is $ 550 million. If approved by the IMF Board of Directors on September 16, Moldova will be able to receive about $ 100 million already in September 2020 to support economic agents and the population in connection with the crisis. The Minister stated that the economy generates GDP in the amount of 205.2 billion lei this year. Due to the pandemic crisis, exports will fall by 12.8%, imports - by 10%. According to the ministry’s forecasts, real sector indicators will decline: industry - by 3%, agricultural sector - by 11.9%, investments - by 4.8%. “We know about the problems of 2020. But we will continue the reform program, adjust plans in accordance with the pandemic evolvement, finding optimal solutions to cover the budget deficit,” the minister said. The discussion was attended by the head of the IMF Permanent Mission to the Republic of Moldova Volodimir Tulin.