World Bank: Moldova Will Need One Generation to Catch Up with Europe

It will take the Republic of Moldova approximately 27 years to reach the average income level of European Union countries if economic growth remains at 3% per annum. This was stated by Ulrich Schmitt, head of the World Bank office in Chisinau, at the Finance and Economic Growth Forum, according to bani.md. According to him, only sustained economic growth of over 5% per year will enable Moldova to catch up with EU countries within a generation, by 2040. Schmitt emphasized that accelerating economic convergence with the European Union is only possible if structural reforms are implemented, private investment is attracted and the public administration system is modernized. “When talking about reforms and growth, it is important to understand that progress does not happen overnight. Moldova has potential, but without deep reforms and effective investments, the pace will remain too slow to close the income gap,” said the World Bank representative. According to the organization’s assessment, the main factors hindering the country’s development are low labor productivity, outdated infrastructure, excessive bureaucracy and labor outflow.