Moldova Economic Update

4.6% -2% 1.5% 2015 2014 2016 Despite regional challenges, Moldova's economic growth was strong in 2014. The growth forecast for 2016 is low, as Moldova's main trading partners are expected to recover slowly. Negative shocks from external demand, remittances and Structural reforms and an financing will push Moldova into recession in 2015. adequate macro framework are essential for improving Moldova's growth prospects. MOLDOVA ECONOMIC UPDATE MOLDOVA SLIPS INTO RECESSION AFFECTED BY AN UNFAVORABLE REGIONAL ENVIRONMENT Economic growth in the European Union remains below its potential. Heightened regional risks reduced foreign Russia's restrictions on agro-food imports from Moldova. Economic troubles and geopolitical tensions in Russia and Ukraine. investments. Severe weakening of the Russian ruble and the reduction of remittances to Moldova put strong pressure on local currency. The World Bank in Moldova. April, 2015 www.worldbank.org/moldova THE WORLD BANK IBRD• IDA WORLD BANK GROUP