Moldova’s GDP grew by 1.9% year-on-year in Q1, with a sharp quarterly advance of 1.1%. Despite weaker overall domestic demand due to subdued consumption and de-stocking, this was the country’s strongest performance since Q4 2022. The GDP reached MDL67.4bn (€3.5bn) in Q1 and €15.4bn in the 12 months to March 2024.
Despite some variations due to multiple crises, Moldova’s economy has remained stagnant over the past five years. The shock induced by the war in Ukraine in early 2022 seems to have blocked the country’s economy after showing signs of returning to growth post-COVID-19.
Key sectors such as manufacturing, utilities, agriculture, and HoReCa boasted double-digit growth rates in Q1, while others like constructions and services to households posted more modest but positive performances. Some sectors like transport and logistics dragged down the overall performance. The gross value added increased by 3.4% year-on-year, with smaller net taxes making a negative contribution.
Final consumption remained flat, decreasing marginally by 0.1% year-on-year. Gross fixed capital formation advanced by 4.8% year-on-year, however, the stock of inventory contracted with a negative impact on the total domestic demand. External demand supported GDP growth in Q1 compared to the same period in 2023, with exports increasing by 1% year-on-year and imports (goods and services) contracting by 4.1%.
