Moldova's economy grows by real 2.5% y/y in Q2

Calculated at current prices, the country's gross domestic product (GDP) totalled 34.25 billion lei ($1.95 billion/1.63 billion euro) for the three months through June, the National Bureau of Statistics said in a statement.

Quarter-on-quarter, Moldova's GDP grew by 0.7%, according to seasonally adjusted data.

Growth in the second quarter was mainly boosted by the wholesale and retail sector, which expanded by 1% year-on-year. The construction sector grew by 0.2% on the year, while the IT sector expanded by 0.1%.

Agriculture and public administration had the biggest negative impact on GDP growth, dropping by 0.5% and 0.1% on the year, respectively.

Final household consumption in Moldova expanded by 3.4%, while gross fixed-capital formation rose 1.4% on the year in the second quarter.

Exports rose by an annual 3.2% and imports fell by 8.3% in the second quarter.

In the first half of 2017, Moldova's GDP expanded by a real 2.8% year-on-year, reaching 63.9 billion lei. The wholesale and construction sectors led the rise, and final household consumption grew 3.5% on the year.

Exports rose 6.5% on the year in the six months through June, while imports fell 10.6%.

Moldova's economy grew by a revised 2.9% on the year in the first quarter of 2017.

In May, the European Bank for Reconstruction and Development (EBRD) increased its projections for Moldova's economic growth to 3.0% in 2017 on the back of lower inflation and international financial assistance.

Moldova’s GDP grew by 4.1% in 2016, supported by growth in agriculture output and in household consumption.

(1euro=21.01 Moldovan lei)