According to the latest report of the International Monetary Fund (IMF), economic growth in Moldova this year will be 0.3%. Growth is expected to reach 2% in 2023, and 5% in 2024.
As for the average annual inflation, the forecast is 15.7% for 2022 and 5% for 2023, mold-street.com reports.
The war in Ukraine has caused a costly humanitarian crisis that needs to be resolved peacefully. At the same time, the economic damage caused by the conflict will contribute to a significant slowdown in global growth in 2022 and will promote growth in inflation, the IMF stated.
Fuel and food prices have spiked, hitting the most vulnerable segments of the population in low-income countries.
Overall growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than predicted in January.
Global growth is expected to decline to about 3.3% in the midterm after 2023.
The rise in commodity prices caused by the war and the growing price pressure led to the forecast of inflation for 2022 at 5.7% in advanced economies and 8.7% in emerging and developing market economies, which is 1.8 and 2.8 percentage points higher than expected last January.
The International Monetary Fund states that multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, solve the debt problem, address climate change and end the pandemic are essential.
According to the IMF estimates, the war will mostly affect the economies of Ukraine which will lose at least 35% of GDP, Russia – with a drop of 8.5% and Belarus - 6.4%.
The IMF estimates economic growth this year at 2.2% in Romania, 3.7% in Poland and Hungary, 2.7% in Turkey, 2.7% in Germany, 2.1% in France, 3.7% in the US and the UK, 2.4% in Japan, 4.4% in China and 8.2% - in India.
The highest economic growth in 2022 is projected in Guyana (a small country in South America) - 47.2%.