Moldova’s Economy Rebounds in Q1 with Sharpest Advance since 2022

In Q1 of the year, Moldova’s GDP experienced a 1.9% year-on-year increase and a 1.1% month-on-month increase, representing the sharpest quarterly advance since the last quarter of 2022. Despite this growth, Moldova’s economy has remained relatively stagnant over the past five years with intermittent disruptions caused by various crises, including the shock induced by the war in Ukraine in early 2022.

Key sectors such as manufacturing, utilities, agriculture, and HoReCa experienced double-digit growth rates, while others like constructions and services to households showed modest yet positive performances. Some sectors like transport and logistics had a negative impact on the overall GDP growth. Overall, the gross value added increased by 3.4% year-on-year, with net taxes making a negative contribution. Final consumption remained nearly flat while gross fixed capital formation advanced by 4.8% year-on-year. The stock of inventory contracted, negatively impacting the total domestic demand.

The growth in GDP was primarily supported by external demand in Q1, with exports increasing by 1% year-on-year, driven by an 8% growth in exports of services. On the other hand, exports of goods saw a slight decrease. Imports of goods and services also contracted by 4.1% year-on-year, contributing to the overall GDP growth.

In seasonally adjusted terms, the quarterly GDP in Q1 was the highest in over two years. However, despite this progression in Q1 2024