Moldova’s GDP shrinks by 14% y/y in Q2

Moldova’s GDP shrinks by 14% y/y in Q2
By bne IntelliNews September 16, 2020

Moldova’s GDP contracted by a real 14% y/y to MDL44.6bn in Q2, the statistics bureau, BNS, announced. 

In the first quarter of the year, Moldova’s economy edged up by 0.9% y/y.

In seasonally adjusted terms, Q2 GDP dropped by 7% q/q. The country’s GDP thus decreased for the fourth quarter in a row.

For the first half of the year, Moldova’s GDP decreased by 7.2% y/y.

The sector of services delivered to households contracted by 21.4% y/y in value added terms and contributed a negative 4.2pp to the overall performance of the GDP in Q2. Industry contracted by 11.7% and contributed a negative 1.7pp. Not a single economic sector posted positive growth. The net taxes collected by the government contracted by 22.7% y/y in the quarter.

On the utilisation side, private consumption of households plunged by 17% y/y in Q2. The gross fixed capital formation contracted by 15.6% y/y. Overall, domestic demand shrank more than the 14% overall GDP and this was possible because net imports diminished.

The only positive development was in foreign trade, where exports contracted less than imports: by 24.2% y/y versus 29.2% y/y. The use of foreign resources has thus decreased compared to the same period last year.