May 9 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday it has maintained its November forecast for Moldova's economic growth in 2018 at 3.5%.
Moldova's economy is expected to grow by 4.0% in 2019, the EBRD said in its new Regional Economic Prospects report.
"Moldova’s economy has benefited from a period of relative calm after the banking crisis and recession in 2014-15. Real output growth of 4.5% in 2017 was supported by benign external economic conditions, good agricultural outturns and a strengthening of domestic demand," the bank said.
Moldova has built its 2018 budget bill on projections of 3.0% economic growth and a budget deficit equivalent to 2.8% of GDP.
A major breakthrough was achieved at the beginning of 2018 in restoring transparent ownership at one of the largest commercial banks but significant vulnerabilities in the financial sector remain, the EBRD said.
Moldova has been trying to cope with a major banking crisis since about $1 billion (842 million euro) went missing from three local banks in November 2014.
The EBRD also noted that in March Moldova reached a new staff-level agreement with the International Monetary Fund (IMF), indicating that the country’s cooperation with the IMF remains broadly on track.
The agreement makes available to Moldova $34.9 million under the current three-year funding arrangement. Moldova already received a total of $79.5 million in three tranches under the current three-year credit facility of $183.1 million approved in November 2016.
($=0.842 euro)