The International Monetary Fund (IMF) forecasts an economic growth of 2.25 percent in Moldova in 2014, the IMF experts communicated their conclusions in a meeting with Prime Minister Iurie Leanca on Wednesday.
The Moldovan economy strongly recovered from the drought-related contraction of 2012, but activity will significantly slow down in 2014 and considerable risks exist, according to the IMF experts who had been in Moldova within a mission on April 22-30, for an analysis of Moldova's macroeconomic situation and prospects for development in the next period.
Earlier, the IMF forecasted, in its World Economic Outlook report released on April 8, that Moldova's economy would record a 3.5-percent growth in 2014, followed by a rise of 4.5 percent in 2015.
"The implementation of the structural reforms, in accordance with the objectives set in the National Development Strategy, is crucial for supporting the economic growth," said IMF's Mission Chief for Moldova Max Alier in his meeting with Moldovan prime minister.
He praised maintaining the target inflation within the limits set by the National Bank of Moldova, significantly reducing the budget deficit, maintaining public debt at an adequate level and the existence of protection reserves against possible external shocks.
The IMF mission chief underlined the importance of continuing the reforms so as to ensure macroeconomic stability, according to a government release, reaching here from Chisinau, capital city of Moldova.
The IMF mission also discussed with the prime minister the risks that could affect the Moldovan economy, including the geopolitical situation in the region, reduced economic growth of the Eastern trading partners and reduced remittances.
"The dialogue between the IMF experts and the responsible institutions in our country helps us better understand the situation and determine the actions for the next period to ensure financial and economic stability and development of a favourable investment climate in Moldova," said Leanca.
Moldova's Economics Ministry expects an economic growth of 4 percent in 2014, yet the World Bank is more reserved in making predictions.
"Given the current difficulties in the external environment and the expected slowdown in agricultural performance, we anticipate a diminution in the growth to 2 percent in 2014 and its stabilisation at 4-4.5 percent during 2015-2017," World Bank Country Director for Ukraine, Belarus and Moldova Qimiao Fan said recently.