This Year Moldova Will Face the Sharpest Economic Decline in 25 Years

According to experts from the Institute for Economic Research (WIIW), Croatia, Montenegro, Slovakia and Moldova this year will experience the strongest economic decline among the countries of Central, Eastern and South-Eastern Europe. The economic decline is due to the crisis caused by the coronavirus pandemic, mold-street.com writes. Thus, Moldova’s economy will witness a decrease in GDP by about 7%, which will be the largest decline in the last quarter of a century. However, experts believe that most of the countries of Central, Eastern and Southeastern Europe withstood the first wave of the coronavirus pandemic better than Western Europe, due to the relatively small size of the service sector, which was most affected by the pandemic. According to experts, economic recovery in Eastern Europe will be slow and will depend on success in combating the pandemic without long-term lockdowns, as well as on continuing government support measures. “After an estimated 4.5% reduction this year, the region’s economy is expected to grow 3.1% in 2021 and 3.3% in 2022. The best indicators in 2021 will be in Croatia and Montenegro, and the recovery will be much slower in Bulgaria and Ukraine. Belarus will face another year of recession,” the analysis says. According to the institute, in 2021 and 2022, Moldova will see economic growth of 4%, and the 2019 level of economic activity will be restored only in 2022.