Economic and Political Overview

flag Moldova Moldova: Economic and Political Overview

In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

 

Economic Indicators

Moldova’s economy is showing signs of recovery, despite ongoing unprecedented challenges from the spillover effects of Russia's invasion of Ukraine. The country faces structural challenges such as low productivity growth, governance issues, a large state presence, limited competition, an imbalanced business environment, and tax distortions. After growing by 0.7% in 2023, Moldova's GDP increased by 0.1% year-on-year to MDL 324 billion (EUR 16.7 billion) in 2024, following negative growth rates in the second half of the year due to the weak performance of the agriculture sector, according to the statistics bureau. The Economy Ministry estimates that Moldova's GDP will grow by 1% in 2025, according to the baseline forecast, as the plan is implemented and EU investments are absorbed.

Regarding public finances, Moldova's general government deficit narrowed to 3.9% of GDP in 2024, driven by strong revenue growth and lower-than-budgeted spending, particularly in capital expenditure (Fitch Ratings). The Moldovan Parliament adopted amendments to the 2025 state budget law, raising revenues by MDL 3.73 billion (5.2%) to MDL 75.285 billion and expenditures by MDL 7.743 billion (9.1%) to MDL 93.191 billion. As a result, the budget deficit will rise by 28.9% to MDL 17.906 billion, or 5.1% of GDP. General government debt was estimated at 38.5% of GDP at the end-2024 and is projected to approach 43% by 2026. Around 63% of the debt is denominated in foreign currency, primarily owed to official creditors on concessional terms. Moldova has no external commercial debt, and interest costs remain low at 1.4% of GDP or 4.1% of government revenues (Fitch Ratings). Meanwhile, average inflation stood at 4.7% in 2024 (from 13.4% one year earlier), but accelerated to 9% y/y in January 2025, driven by adjustments to gas, electricity, and heating tariffs, along with higher prices for certain food products. Although EU funding to subsidise energy bills and weak domestic demand may help moderate the impact of rising electricity prices, Fitch projects annual inflation to average 9.5% in 2025. Moldova became an EU candidate country in 2022, and in November 2023, the EU Commission recommended that the European Council open accession negotiations. On 20 October 2024, Moldova held a constitutional referendum alongside the first round of the presidential election, approving an amendment to include the country’s EU membership aspiration in the Constitution.

Despite two decades of sustained economic growth, poverty persists, especially in rural areas with limited access to services and economic opportunities. Traditional poverty alleviation methods, like remittances and social assistance, are slowing, and low labour force participation and employment rates hinder employment-based poverty reduction, highlighting the need for structural reforms. While the unemployment rate was estimated at 4% in 2024 by the National Bureau of Statistics, nearly a quarter of young people aged 15-34 were neither employed nor in education and training (NEET). In 2024, the GDP per capita was estimated at USD 18,524 by the IMF, around 70% lower than the European Union’s average.

 
Main Indicators 2023 (E)2024 (E)2025 (E)2026 (E)2027 (E)
GDP (billions USD) 16.5818.0619.6521.5323.73
GDP (Constant Prices, Annual % Change) 0.72.63.74.45.0
GDP per Capita (USD) 6,6427,3688,1619,10510,215
General Government Gross Debt (in % of GDP) 35.336.934.832.731.7
Inflation Rate (%) 13.45.05.05.05.0
Unemployment Rate (% of the Labour Force) 4.53.53.53.53.5
Current Account (billions USD) -1.97-2.03-2.11-2.15-2.30
Current Account (in % of GDP) -11.9-11.2-10.7-10.0-9.7

Source: IMF – World Economic Outlook Database , Latest available data

Note: (e) Estimated Data

Main Sectors of Industry

Even if its impact on the country´s GDP has decreased over the past years, the agriculture sector is key to Moldova's economy: it still represents 7.6% of GDP and employs nearly 51% of the workforce (World Bank, latest data available). Farmlands cover 2.48 million hectares or 75% of the country’s territory, including 1.82 million hectares of arable land (National Bureau of Statistics). Moldova's main products are vegetables, fruits, grapes, grain, sugar beets, sunflower seeds, tobacco, beef, milk, and wine. In recent years, the government of Moldova has made efforts to modernize and improve the efficiency of the agricultural sector. This has included investments in new equipment and technology, as well as the implementation of policies aimed at improving land use and increasing agricultural productivity. However, the agricultural sector still faces some challenges, including limited access to financing and a lack of infrastructure in rural areas. According to data from the statistical office, Moldova’s agricultural output fell by 14.6% in 2024, as crop production experienced an annual growth of 22.9%, whereas the output of animal products increased by 5.7%.
 
The secondary sector represents 17.4% of the GDP, employing 13.3% of the active population. Traditionally, the country’s main industries have been agriculture and food processing, textile, apparel, and footwear. The manufacturing industry alone is estimated to contribute 8% of the country’s GDP. The government of Moldova has implemented policies aimed at supporting the growth of the industrial sector, including tax incentives for investors and efforts to improve the business environment. The National Bureau of Statistics states that, adjusted for calendar and seasonal effects, industrial production fell by 0.8% in 2024 compared to 2023, due to a 3.8% drop in manufacturing, despite increases of 11.3% in extractive industries and 11.1% in electricity, gas, heat, and air conditioning supply.
 
The GDP structure is progressively turning towards services, to the detriment of heavy industry and agriculture. The tertiary sector now represents 61.1% of the GDP, employing more than one-third of the workforce (35.5%), driven by the insurance, legal consultancy, and telecommunications sectors. The ICT sector is also growing (7.1% of GDP in value-added terms in 2024, +5.5% y-o-y). The finance sector in Moldova has undergone significant reforms in recent years, with efforts to strengthen regulation and supervision, increase transparency and accountability, and promote competition. By the end of 2023, 11 licensed banks operated in Moldova, with total assets reaching MDL 153 940.5 million, up 17.2% (MDL 22 572.3 million) from the previous year. Loans and advances at amortised cost made up the largest share at 40.6% (MDL 62 487.1 million), down 4.1 pp from end-2022 (Central Bank data). Moldova has also made efforts to improve its transportation infrastructure, including through investments in roads, railways, and airports, in order to support the growth of the services sector. According to data from the National Bureau of Statistics, the country welcomed almost 474k tourists in 2024 (+21.1% y-o-y).

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 51.1 13.3 35.5
Value Added (in % of GDP) 7.6 17.4 61.1
Value Added (Annual % Change) 29.2 -11.7 2.2

Source: World Bank - Latest available data.

 

Find more information about your business sector on our service Market Reports.

 
 
Monetary Indicators 20162017201820192020
Moldovan Leu (MDL) - Average Annual Exchange Rate For 1 MUR 0.560.540.500.500.44

Source: World Bank - Latest available data.

 
 

Find out all the exchange rates daily on our service Currency Converter.

Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:
62,5/100
World Rank:
85
Regional Rank:
41

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 
 

Country Risk

See the country risk analysis provided by Coface.

 

Return to top

Foreign Trade in Figures

International trade represents around 95% of Moldova's GDP (World Bank, latest data available). The country is a member of the World Trade Organization (WTO) and has signed 47 free trade agreements, including those with the EU, Turkey, the UK, and the Commonwealth of Independent States. According to data by the National Bureau of Statistics, in 2023, the country’s main exports were vegetable products (24.0%), machinery and mechanical appliances; electrical equipment (17.9%), prepared foodstuffs; beverages, spirits and vinegar; tobacco (12.0%), mineral products (11.7%), and textiles and textile articles (8.7%); whereas imports were led by mineral products (23.0%), machinery and mechanical appliances; electrical equipment (17.2%), products of the chemical or allied industries (10.1%), vehicles, aircraft, vessels and associated transport equipment (8.0%), prepared foodstuffs; beverages, spirits and vinegar; tobacco (6.3%).

Traditionally, exports were directed mainly to Russia, but since 2009 more than half of Moldova’s exports have been destined for EU markets. In 2023, the country’s main trading partners were Romania (35.1%), Ukraine (14.7%), Italy (6.4%), Germany (5.5%), and Czechia (4.0%); with imports coming chiefly from Romania (15.0%), Ukraine (12.4%), China (11.7%), Turkey (8.5%), Germany (7.1%), and Italy (5.4%). Overall, the European Union absorbed 65.4% of Moldova's exports and 48.3% of its imports (data National Bureau of Statistics).

Moldova’s trade balance is structurally in deficit. According to data by WTO, in 2023, the country exported USD 4 billion worth of goods against USD 8.6 billion in imports (-6.5% and -5.9% y-o-y, respectively). Concerning services, exports (at USD 2.5 billion) were higher than imports (USD 1.5 billion). Data from the World Bank shows that the country’s trade balance on goods and services was negative by 24.1% of GDP in 2023 (from 28.3% one year earlier). Preliminary figures from the National Bureau of Statistics point out that, in 2024, Moldova's trade deficit grew 19.1% to USD 5.51 billion, with a USD 2.15 billion gap with the EU (up 39.7%) and USD 104.7 million with the CIS (down 50%). Exports dropped 12.2% to USD 3.56 billion, including Moldovan goods (USD 2.71 billion, -5.6%) and re-exports (USD 846.8 million, -28.1%). Exports to the EU fell by 9.6% to USD 2.39 billion and to the CIS by 19.9% to USD 241.6 million. Imports rose by 4.5% to USD 9.07 billion, including USD 4.55 billion from the EU (+8.6%) and USD 346.3 million from the CIS (-35.2%).   

 
Foreign Trade Indicators 20192020202120222023
Imports of Goods (million USD) 5,8435,4167,1779,2198,674
Exports of Goods (million USD) 2,7792,4673,1444,3324,049
Imports of Services (million USD) 1,1788801,1621,3711,575
Exports of Services (million USD) 1,5441,2781,6352,2792,551
Imports of Goods and Services (Annual % Change) 6.2-9.521.215.9-3.1
Exports of Goods and Services (Annual % Change) 8.2-14.917.526.75.2
Imports of Goods and Services (in % of GDP) 56.451.457.869.559.6
Exports of Goods and Services (in % of GDP) 31.227.930.641.235.5
Trade Balance (million USD) -3,312-3,094-4,190-5,193-4,869
Trade Balance (Including Service) (million USD) -2,946-2,696-3,718-4,284-3,974
Foreign Trade (in % of GDP) 87.679.388.5110.795.1

Source: WTO – World Trade Organisation ; World Bank , Latest Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2023
Romania 35.1%
Ukraine 14.7%
Italy 6.4%
Germany 5.5%
Czech Republic 4.0%
See More Countries 34.3%
Main Suppliers
(% of Imports)
2023
Romania 15.0%
Ukraine 12.4%
China 11.7%
Türkiye 8.5%
Germany 7.1%
See More Countries 45.2%

Source: Comtrade, Latest Available Data

 
 

Main Products

4.1 bn USD of products exported in 2023
Insulated "incl. enamelled or anodised" wire,...Insulated "incl. enamelled or anodised" wire, cable "incl. coaxial cable" and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors 13.5%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 9.8%
Sunflower-seed, safflower or cotton-seed oil and...Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified 6.0%
Wheat and meslinWheat and meslin 5.5%
Maize or cornMaize or corn 3.6%
See More Products 61.6%
8.7 bn USD of products imported in 2023
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 14.7%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 6.7%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 4.6%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.0%
Insulated "incl. enamelled or anodised" wire,...Insulated "incl. enamelled or anodised" wire, cable "incl. coaxial cable" and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors 2.6%
See More Products 68.4%

Source: Comtrade, Latest Available Data

 
 

To go further, check out our service Import-Export Flows.

 
 

Main Services

2.2 bn USD of services exported in 2023
30.24%
27.21%
24.06%
11.26%
2.36%
2.27%
1.29%
0.64%
0.26%
0.24%
0.16%
1.5 bn USD of services imported in 2023
38.11%
34.43%
10.92%
5.77%
2.38%
2.36%
2.18%
1.73%
0.81%
0.69%
0.62%

Source: United Nations Statistics Division, Latest Available Data

Return to top

Sources of General Economic Information

Ministries
Ministry of Economy of the Republic of Moldova
Statistical Office
National Bureau of Statistics of the Republic of Moldova
Central Bank
National Bank of Moldova
Stock Exchange
Moldova Stock Exchange
Search Engines
Moldova.org
Economic Portals
Government of Republic of Moldova
The World Bank in Moldova

Return to top

Political Outline

Current Political Leaders
President: President Maia SANDU (since 24 December 2020)
Prime Minister: Dorin RECEAN (since 16 February 2023)
Next Election Dates
Presidential: 2028
Legislative: July 2025
Main Political Parties
Moldova has a multi-party system with relatively equally distributed seats. The country's major parties who are represented in the parliament are:

- Action and Solidarity Party (PAS): social liberalism, pro-Europeanism
- Electoral Bloc of Communists and Socialists (Bloc): its members are the Party of Communists of the Republic of Moldova (PCRM) and the Party of Socialists of the Republic of Moldova (PSRM)
- Sor Party (Chance. Duties. Realization.): populist, Eurosceptic
- Victory: left-wing, pro-Russian
- Revival Party: pro-Russian, left-wing
- National Alternative Movement: centre, pro-Europeanism.
Type of State
Republican state based on parliamentary democracy.
Executive Power
The President is the Head of State and is elected via direct elections for a four-year mandate (renewable once). After the year 2000 and prior to a decision of the Constitutional Court in March 2016, the President was elected by the parliament. Although the President is an influential figure on the political scene, executive powers are primarily vested in the Prime Minister and the Government. The Prime Minister is designated by the President but must be confirmed through a vote of confidence by parliament (generally, the head of the majority party or coalition is the one chosen). The Prime Minister also serves a four-year term. He or she is the Head of Government and holds executive powers, which include the implementation of the law and the running of the country's day-to-day affairs. The Cabinet is chosen by the Prime Minister, subject to the approval of parliament, and nominated by the President.
Legislative Power
The legislature in Moldova is unicameral. The Parliament consists of 101 seats; its members serve four-year terms and are all directly elected through a nationwide closed party-list proportional representation system. In Moldova, Parliament is supreme and can dismiss the government if it so wishes.
 

Indicator of Freedom of the Press

Definition:

The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

World Rank:
89/180
Evolution:
91/180
 

Indicator of Political Freedom

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:
Partly Free
Political Freedom:
3/7
Civil Liberties:
34/60

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

 

Return to top

Any Comment About This Content? Report It to Us.

 

© eexpand, All Rights Reserved.
Latest Update: May 2025