On the demand side the economy was supported by private consumption, which was enabled by increasing real wages and by resurging remittances. Inflation increased to 6.6% in 2017, which was also influenced by one-off effects. During the year, the Leu has appreciated by ca. 15% vs the US dollar, which reflects the favourable external economic position. The budget deficit was at 3.1% of GDP in 2017 and thus lower than expected, which is related especially to increased tax revenues.
The macroeconomic situation in Moldova can be considered stable. However, growth should be significantly higher in the medium and long term if Moldova is to catch up with more developed economies. The decreasing population will be a considerable impediment to such efforts. This trend is both a consequence and a reason for moderate economic growth rates. Thus it is all the more important that the recently launched reforms will be successfully implemented and expanded in order to provide a perspective for the Moldovan people.