Moldova Policy Notes 2019 : Sustaining Stability and Reviving Growth
Over the last two decades, Moldova has achieved major development results: with average annual growth of 4.6 percent since 2000, poverty has decreased dramatically, and the growth has also benefitted more citizens: Inequality, as measured by the Gi...
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| Format: | Policy Note |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/430371563375376283/Sustaining-Stability-and-Reviving-Growth-Moldova-Policy-Notes-2019 http://hdl.handle.net/10986/32183 |
| Summary: | Over the last two decades, Moldova has
achieved major development results: with average annual
growth of 4.6 percent since 2000, poverty has decreased
dramatically, and the growth has also benefitted more
citizens: Inequality, as measured by the Gini Index, has
declined from 36.4 in 2000 to 26.3 in 2016. Macroeconomic
stability has been maintained despite the 2014 banking
crisis, and monetary and the exchange rate policies have led
to a declining inflation protecting the living standard of
Moldova’s citizens. The country has benefitted from its
unique assets, such as a strategic European location and
growing global integration. The authorities’ focus on
investment policy put the country on investors’ map:
commitment demonstrated in investment promotion and the
level of service and attention that was given to investors
led to attracting manufacturing FDI. They on the other hand
helped reorient exports towards more technology-intensive
products and allowed for a stronger contribution of exports
to growth and employment generation. Moldova has also
significantly reformed its business environment, ranking
today 47th of the 190 countries measured on ease of doing
business. There was also effort to improve the quality of
human capital. The education system reform led to
improvement of student learning outcomes in Moldova, as
measured by the Program for International Students
Assessment (PISA), although there are still major gaps in
learning outcomes that need to be addressed. The preprimary
enrollment rates increased substantially, and labor force
participation rate increased to historical highs, albeit at
43 percent still comparatively low. |
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