The inflation rate in Moldova will be back to normal in two years. The International Monetary Fund has released economic forecasts for the republic until 2027.
Inflation in two years will reach 5%, the goal set by the National Bank. So far, the country is dominated by stagflation, that is, the economy is stagnant, inflation is high, trm.md reports.
However, forecasts by the International Monetary Fund show that next year the rate of price growth will begin to decline and the economy will grow.
Economic growth will reach almost 6%, but will stop at approx. 5% in 2027. In the next five years, the gross domestic product will gradually increase to $18.7 billion, which will be the value of goods and services produced in our economy.
The IMF does not expect Moldova to win investors’ confidence overnight. Both foreign and private or public investments are approaching 30% of GDP, but will drop to 26% in five years.
Depopulation remains a big problem: in the next five years, the population will decrease by about 200 thousand people and reach 2.3 million.
The IMF predicts that foreign trade will increase, but the trade balance will remain negative, meaning the country will still import more than it exports. Government debt will be 40% of GDP, but that’s not necessarily negative.