Republic of Moldova: Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Request for modifications of performance criteria, and Second review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Alternative Executive Director for the Republic of Moldova
IMF Staff Country Reports, December 19, 2024
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- Republic of Moldova: Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Request for modifications of performance criteria, and Second review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Alternative Executive Director for the Republic of Moldova
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Bibliographic details
- Published: December 19, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400297151.002
Overview
- Presents IMF’s Sixth Review under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) Arrangements, Request for Modifications of Performance Criteria, and Second Review under the Resilience and Sustainability Facility (RSF) Arrangement for Moldova.
- Recovery from adverse spillovers from Russia’s war in Ukraine and energy price shocks is taking hold.
Economic outlook and recent performance
- Growth picked up in 2024 and is expected to strengthen further in 2025, driven by robust domestic demand.
- Downside risks remain high, mainly related to Russia’s war in Ukraine and renewed energy shocks.
- Quantitative performance of the program has been strong.
Risks and vulnerabilities
- Main downside risks:
- Russia’s war in Ukraine.
- Renewed energy shocks.
- Other flagged vulnerabilities include climate-related risks and external shocks that could reverse recovery momentum.
Program implementation and reform progress
- Implementation of structural reforms has been uneven despite strong quantitative program performance.
- Areas with uneven implementation include governance and rule of law reforms, energy security measures, and public resource allocation improvements.
Policy recommendations and priorities
- Further reforms are key to protect Moldova against shocks and improve growth prospects. Priorities highlighted:
- Enhance fiscal performance and the allocation of public resources.
- Strengthen energy security.
- Strengthen governance and the rule of law.
- Advance climate adaptation and mitigation.
IMF Staff Country Report: Republic of Moldova — Sixth Reviews under the ECF and EFF, Request for Modifications of Performance Criteria, and Second RSF Review (December 19, 2024).
Content in this bundle
- IMF staff report — Republic of Moldova