Ionita: Moldova Is Currently Experiencing a Rogue Wave of Price Growth

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Economic expert VeaceslavIonita claims that at present a real “rogue wave of price growth”is overtaking the Republic of Moldova. According to the expert, there are many reasons – the situation on the international market, the gas crisis, as well as an excess of money in the pockets of citizens who spend it irrationally without investing. Thus, everything is becoming more expensive, starting with food, real estate, fuel, services, etc., reports Economic analyst VeaceslavIonita claims that at present, after the freezing of the economy in 2020, Moldova is experiencing a fairly strong growth in consumption. This inevitably leads to an increase in prices, but also to a significant stimulation of imports. Since the beginning of the year alone, it has grown by $ 1.2 billion. “Last year, people restricted their consumption, and this year it has increased dramatically. Thus, official sales in the Republic of Moldova, although a lot of purchases are made through the dark economy, will grow by at least 35 billion lei, which will obviously affect the price increase," the expert believes. The crisis in China, the USA and the EU in the market of petroleum products and natural gas also affects the Republic of Moldova. An increase in energy prices is inevitable. At the same time, according to forecasts, the volume of money transfers will reach a record level of $ 1.7 billion. And this money will be used for consumption, which will put pressure on prices. Expert VeaceslavIonita claims that the incomes of Moldovan citizens are not used for investments and domestic production. In addition, the volume of loans has increased. Every month, citizens borrow about one and a half billion lei from banks. According to the economic analyst, the positive thing is that this year the state budget will receive almost 4.5 billion lei more from VAT than in 2020. Point