
Overview
- New President Maia Sandu took office on 24 Dec 2020; after the resignation of PM Ion Chicu, Aureliu Ciocoi was appointed acting PM; parliamentary elections expected in spring 2021
- In 2020, Moldova’s economy suffered twin shocks with COVID-19 and a severe drought in the agricultural sector; we forecast GDP to decline by 6.7%
- Recovery in 2021: GDP forecast to grow by 4.5%
- Inflation remained within the National Bank’s target corridor in 2020; however, it is expected to decline to 2.5% in 2021
- Budget deficit is expected to reach 5.4% of GDP in 2020, due to decreased revenues and increased expenditures; available sources of external financing (IMF, EU) only partially used