Due to a number of external and internal economic constraints, the national economy was in stagnation in the first half of 2022 and in the second quarter entered into recession.
Moreover, in 2022, as a result of galloping increases in energy and food prices, the cost of services increased significantly, ipn.md reports.
These are the conclusions of experts from the National Institute of Economic Research in the new publication Economic Trends in Moldova
“Prices for food products increased by 28%, for non-food products – by 18.4%, the cost of services increased by 27.3%. This significant increase in price is due to higher prices for housing and communal services, which is up by 76.1%. The cost of natural gas is 3.5 times higher, hot water and central heating are 80.9% and 92% more expensive respectively. The prices of both ground and air transport services have increased,” researcher Olga Timofei said.
According to the analysis by the National Institute for Economic Research, there was a significant increase in the price of agricultural products, construction materials and fuel prices in 2022. The economic projections for the end of 2022 are not encouraging either.
“In most industries, negative trends will remain through the end of 2022. Post-2019 developments show the declining resilience of agricultural and industrial sectors to the shocks we have experienced. It is estimated that industrial production will decline by 2% and agricultural production by 7%,” researcher Victoria Fala said.
The conclusions of scientific researchers are that the development of international prices has a strong impact on the dynamics of domestic prices. The National Bank will continue its restrictive monetary policy to reduce inflation risks.
Both factors in the international ratings place Moldova among the states with high political, economic and financial risk, which reduces the investment attractiveness of the Republic of Moldova.