IMF Staff Country Reports

Moldova’s near-term outlook is aimed at slowing growth and receding inflation, but the deteriorating external environment and the fragile political situation poses significant downside risks. The main drivers of growth are private consumption, investment, and exports, fuelled by remittances and rising credit, which is reflected in the improving business climate. Weak tax collection and expenditure overruns resulted in missing the performance criterion on the general government budget deficit by 0.4 percent of GDP. The indicative target on reducing general government expenditure arrears was missed marginally owing to underpayment of heating bills by the Chisinau municipality.