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Moldova's GDP Q1 increased in real terms 0.9%

Christian Fernsby ▼ | June 16, 2020
This was reported by the National Bureau of Statistics, noting that, taking into account seasonal adjustments, GDP increased by 1.2% compared to the same quarter of 2019, and by 0.5% compared to the fourth quarter of 2019.
Moldova factory
GDP   Moldova factory
According to the NBS, the following economic activities mainly contributed to the growth of GDP in the I quarter of 2020, compared with the I quarter of 2019: Construction (+ 0.6%), whose gross value added (GVA) increased by 8,6%, and the contribution to the formation of GDP was 6.9%; Information services and communications (+ 0.4%), with an increase in GVA of 5.9% and a contribution to the formation of GDP of 6.8%; Wholesale and retail trade; maintenance and repair of motor vehicles and motorcycles; transport and storage; accommodation and catering activities (+ 0.3%), GVA of which increased by 1.7%, and the contribution to the formation of GDP amounted to 20.1%.

Topics: Moldova GDP

Taxes on products also had a positive effect on GDP growth (+ 0.5%), the volume of which increased by 3.9%, and the share in GDP amounted to 15.3%.

At the same time, the following factors had a negative impact on the index of physical volume of GDP: Mining; manufacturing industry; production and supply of electric and heat energy, gas, hot water; air conditioning; water supply; waste treatment and recovery and restoration work (-0.3%), GVA of which decreased by 1.7%, and the contribution to the formation of GDP amounted to 15.4%; Public Administration and Defense; compulsory social insurance; education; healthcare and social services (-0.2%), the GVA of which decreased by 1.5%, and the contribution to the formation of GDP was 13.7%; Professional, scientific and technical activities; administrative activities and additional services in this area (-0.2%), the GVA of which decreased by 4.9%, and the contribution to the formation of GDP amounted to 3.7%.

In terms of the use of GDP, growth was due to an increase in: Gross fixed capital formation (+ 2%), the volume of which increased by 9.3%, and the share in GDP amounted to 21.2%; The final consumption of government and non-profit organizations serving households (+ 0.1%), the volume of which increased by 0.8%, and the share in GDP amounted to 18.7%; Changes in inventories (+ 4.9%), whose contribution to GDP was 0.9%.

A negative effect on the index of physical volume of GDP was exerted by: Final household consumption (-1.6%), the volume of which decreased by 1.8%, and the share in GDP amounted to 84.9%; Net exports of goods and services (-4.5%) as a result of a significant predominance of the share of imports of goods and services (60.8%) over the share of exports of goods and services (35.2%) in the formation of GDP, as well as a result of growth in physical volume imports of goods and services (+ 2.3%) compared with a decrease in the index of physical volume of exports of goods and services (-7.8%).

As InfoMarket reported earlier, the IMF and the Moldovan government forecast that Moldova’s GDP will fall by 3% in 2020 amid the coronavirus pandemic.

However, as Prime Minister Ion Chicu later said, the economic downturn in Moldova in 2020 due to the crisis will be stronger than previously predicted and could reach 6.3%, as experts of the German Economic Team stated.

The World Bank forecasts a 2020 recession in the Moldovan economy at 3.1%, and the EBRD at 4%.


 

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