Moldova Witnesses 31% Absolute Poverty Rate, with 1.3% of the Population Living on Less Than $2.15 Per Day

According to the Moldovan government’s first progress report on the implementation of the 2030 Agenda of Sustainable Development, the economic and social situation in Moldova has been seriously affected by a several factors. First of all, we are talking about the energy crisis, rapid inflation and the war in Ukraine. According to the report, one of the most alarming aspects is the increase in the absolute poverty rate to 31% in 2022. Such a significant increase in the absolute poverty rate indicates a step backwards for Moldova in its efforts to fight poverty and improve the living standards of citizens. The data presented in the report shows that despite some temporary improvements, the percentage of the population living on less than $2.15 a day increased to 1.3% in 2022, while the percentage of the population living on less than $4.3 a day reached 6.1%. The absolute poverty rate rose from 23% in 2018 to 31.1% in 2022, the highest since 2014. The government report denotes a number of challenges to Moldova’s progress in poverty reduction, including an underdeveloped economy, limited investment, low labor productivity, vulnerability to economic crises and climate change, regional imbalances and relatively high poverty rates compared to other countries. However, the report also mentions the government’s efforts to combat poverty, such as improving the social protection system, raising the minimum wage, supporting the population during the cold season and increasing the percentage of retirees receiving a pension. Nevertheless, it is clear that much more needs to be done to achieve the 2030 target of reducing absolute poverty to 10% of the total population. In addition, high inflationary pressure caused by the war in Ukraine has led to a 5.9% fall in real household incomes in 2022, highlighting the country’s economic vulnerability. In this context, the importance of continued investment in social protection and stable economic growth programs is highlighted to strengthen Moldova’s resilience to external shocks. In conclusion, it is noted that Moldova faces serious challenges in terms of fighting poverty and improving the living standards of citizens. Efforts must continue to be made to put the country on a sustainable development path and to achieve the goals set globally in the 2030 Agenda.