REPUBLIC OF MOLDOVA
Economic overview
Despite sustained growth, economic disparities remain substantial
The Moldovan economy expanded over the last decade, growing at a compound growth rate of 2.9%. The important agricultural sector, which accounts for around 10% of GDP, has been a source of volatility. The COVID-19 crisis represented a severe setback from which it had already bounced back by the time the negative spillovers of the war in Ukraine hit the country, clouding economic prospects. Years of sustained growth have resulted in significant reductions in poverty. However, there is a large income and access to services gap between urban and rural areas. Remittances, accounting for around 15% of GDP, are critical to complement income and plug a persistently large trade deficit