## IMF Staff Concludes Visit to Moldova

_IMF News, May 3, 2024_

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**Canonical URL:** [IMF Staff Concludes Visit to Moldova](https://www.imf.org/en/news/articles/2024/05/03/pr24134-imf-staff-concludes-visit-molodova)

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## Bibliographic details
- Published: May 3, 2024

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### Mission and context
- IMF mission led by Clara Mira conducted discussions in Chisinau during April 22-May 3 for the fifth reviews of Moldova’s programs under the Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangements and the first review under the Resilience and Sustainability Facility (RSF) arrangement.
- End-of-Mission press release clarifies that the statement conveys preliminary findings of IMF staff and does not necessarily represent the views of the IMF’s Executive Board.
- The team will continue discussions with the goal of reaching a staff-level agreement in the near term.

### Economic performance and outlook
- Real GDP grew by 0.7 percent in 2023, below the IMF’s 2 percent forecast at time of the last review.
- Recovery should continue in 2024, with growth of 2.6 percent, again less than previously projected.
- Recovery has been slower than expected, primarily due to a weaker recovery of domestic demand, particularly private consumption and investment.
- Persistent challenges and spillovers from Russia’s war in Ukraine continue to affect the economy.
- Risks to the outlook:
  - Downside: possible renewed energy shocks or a new wave of refugees.
  - Upside: faster-than-anticipated growth in trade partners, faster progress towards EU accession, and acceleration of structural reforms.

### Program performance and structural reforms
- “Program performance has been sound and broadly on track, although some structural reforms have been delayed.”
- The authorities met all end-December quantitative performance criteria.
- End-December structural benchmarks on strengthening tax administration and completing a triage of state-owned enterprises were met.
- The Law on Climate Action was adopted.
- Delayed reforms (work ongoing):
  - Strengthening the institutional autonomy and governance of the NBM (December).
  - Establishing an anti-corruption adjudication infrastructure, including a credible process for the selection of judges (March).

### Policy recommendations and monetary framework
- With inflation within the NBM’s target band since November, the current monetary policy stance is appropriate.
- Exchange rate flexibility and preserving sufficient foreign exchange buffers will be critical to address shocks.
- Monetary policy should remain focused on preserving price stability.
- The 2024 budget is described as strengthening social safety nets, further sustaining energy security, and supporting growth-enhancing investment and reforms.

### Next steps and IMF engagement
- Based on the preliminary findings, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.
- The IMF team reaffirmed its commitment to support Moldova.

*Press Release No. 24/134 — May 3, 2024*

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## References

- [Republic of Moldova and the IMF](http://www.imf.org/external/country/MDA/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2024/05/03/pr24134-imf-staff-concludes-visit-molodova_