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Posted by: Bogdan Nigai
News / Economic
16 Feb. 2021 / 17:01
In 2020, there was the worst economic downturn in 20 years
Last year, the Republic of Moldova registered the worst economic recession in the last 20 years, caused primarily by the pandemic crisis and drought. Our country registered a reduction of approximately 6.5% of the Gross Domestic Product. The data are contained in a study conducted by the Independent Analytical Center "Expert-Group". According to the analysis, the crisis has been deepened by problems in the economy that have existed so far. However, one of the main challenges remains to manage the public finance system, informs Moldova 1.
"The economy has lost 10 percentage points this year and is the largest economic decline in 20 years, even greater than in 2009. Of course there is an amalgam of factors, such as: activity and mobility restrictions, income decrease, prudent consumption in conditions of uncertainty or reduction of external demand, vulnerability to the pandemic and of course severe drought," mentions the expert Stas Madan.
Also due to the factors listed above, in 2021, an increase in the volume of loans granted by banks is expected.
"We anticipate an increase in lending to individuals from 10% and 15% in the case of legal entities. Basically, the lending trend will change this year, because the loans granted to legal entities increase faster, but these forecasts can be influenced by several factors during the year," says the expert Dumitru Pîntea.
For 2021, experts forecast economic growth of 5.4%. With the recovery of the economy, an increase in salaries and pensions is anticipated. Wages might increase by 1.7%.
"The main objective of the Government for 2021 will be focused on strengthening the budgetary-fiscal position and responsible management of public finances. At the same time, the implementation of the main policy measures in response to the COVID-19 pandemic requires significant resources, including financial ones," mentions the Minister of Finance, Tatiana Ivanicichina.
According to experts, projects to maintain and create jobs, measures to support women during the pandemic, digitalization of businesses, support for self-employment, but also young people are among the main programs that should be funded from the state budget.
Also due to the factors listed above, in 2021, an increase in the volume of loans granted by banks is expected.
"We anticipate an increase in lending to individuals from 10% and 15% in the case of legal entities. Basically, the lending trend will change this year, because the loans granted to legal entities increase faster, but these forecasts can be influenced by several factors during the year," says the expert Dumitru Pîntea.
For 2021, experts forecast economic growth of 5.4%. With the recovery of the economy, an increase in salaries and pensions is anticipated. Wages might increase by 1.7%.
"The main objective of the Government for 2021 will be focused on strengthening the budgetary-fiscal position and responsible management of public finances. At the same time, the implementation of the main policy measures in response to the COVID-19 pandemic requires significant resources, including financial ones," mentions the Minister of Finance, Tatiana Ivanicichina.
According to experts, projects to maintain and create jobs, measures to support women during the pandemic, digitalization of businesses, support for self-employment, but also young people are among the main programs that should be funded from the state budget.
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