Top 10 Economic Vulnerabilities of the Republic of Moldova
Automatically translated summary. The full text is available in Romanian.
The Independent Think Tank “Expert-Grup” has published a ranking of the ten main economic vulnerabilities of the Republic of Moldova. It rests on a vulnerability index scored from -1 (minimum) to -5 (maximum), based on the collective opinion of Expert-Grup's experts.
Each source of vulnerability is weighed against its main mitigating factors, scored from +1 to +5. The difference gives the residual vulnerability, which is usually negative and therefore calls for an urgent policy response from the Government. Vulnerabilities fall into three groups: high, medium and low.
The high group comprises acute dependence on imported energy, erosion of economic growth potential, persistent budget imbalances and a high current account deficit. These point to the need for investment in energy efficiency and renewables, a stronger electricity transmission infrastructure, and financial support for firms that create high value added, transfer technology and enter foreign markets. They also call for fiscal consolidation through the gradual removal of tax incentives and action against the informal economy. The ranking draws on an Expert-Grup report, supported by CASE (Poland) and funded by OSF.
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