Osmochescu: Moldova’s Economy Must Grow by 7% a Year for a Real Improvement in Living Standards

Deputy Prime Minister Eugeniu Osmochescu has stated that, in order to achieve a tangible improvement in living standards, Moldova’s economy must grow by 7% annually. However, the authorities are currently forecasting growth of just 4% for the coming years. “If we reach that 7% mark, it would be very good,” Osmochescu noted, adding that annual growth of around 4% is forecast for the period 2027-2029, according to moldova1.md. The minister explained that the pace of convergence with the European Union depends not only on the dynamics of economic growth, but also on the quality of the reforms, which are under constant scrutiny by external partners. “If we are so successful in carrying out reforms, so swift in implementing them, reforms that are tangible rather than merely existing on paper, since the European Union checks how we are implementing these changes, we may not gain access to pre-accession funds. Other states that joined the European Union in previous years, the most recent of which were Romania and Bulgaria, had such access,” Osmochescu emphasized. At the same time, according to the minister, accession to the European Union itself would open up access to structural funds, which would have a significantly greater impact on the country’s economy. Another serious obstacle remains labor productivity, which in Moldova is still below the minimum level typical of EU member states. As the minister noted, to reduce this gap, the country would need an additional 300,000 people in the labor market. “We have a huge amount of work ahead to reach the European Union’s level. We conducted a study on labor productivity and found that we are below the minimum indicators for EU countries. The paradox is that productivity does not necessarily increase, yet wages are rising,” explained Osmochescu. He added that digitalization and the introduction of artificial intelligence technologies will be key drivers of future economic growth. The authorities believe that industry, agriculture and information technology will continue to be the drivers of the economy. However, the minister emphasizes that structural reforms are necessary to ensure that economic growth ultimately translates into real income for the population.