Moldovan economy growth forecast revised downwards

Independent analytical centre «Expert Grup» has revised its forecast of the Republic of Moldova economic growth in 2012 from previous 1.2% to 0.5%.

The forecast decrease is caused by bad plight of the agricultural sector, which has been hit hard by unprecedented drought, said the centre’s executive director Valeriu Prokhnitski.

According to the updated forecast, the decline in agriculture at the end of the year will be 16%, but the relevant ministry does not rule out the reduction of 20-25%. GDP growth forecast for 2013 is now 3.4% against previous 5%.

Institute of Economics, Finance and Statistics has downgraded its forecast, too. The Institute’s experts expect Moldova’s economy to grow in 2012 by 0.2% against 4.3% they were predicting at the beginning of the year.

According to the latest EBRD report «Regional economic prospects», growth forecast for Moldovan economy has been reduced to 1% from previous 2.5%. 

English translation by BSN
Adapted from Moldpres