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Moldova's economy grows by real 4.5% in 2017

Moldova's economy grows by real 4.5% in 2017 Moldova's economic growth

CHISINAU (Moldova), March 19 (SeeNews) - Moldova's economy expanded by 4.5% in real terms in 2017, mainly on the back of successful performance of the agriculture, wholesale and retail sectors, the country's statistical office said.

Calculated at current prices, Moldova's gross domestic product (GDP) totalled 150.4 billion lei ($9.08 billion/7.4 billion euro) in 2017, the National Bureau of Statistics said in a statement on Friday.

In the fourth quarter alone, Moldova's GDP grew by 6.4% on the year and by 1.3% on the quarter, reaching 40.9 billion lei, according to seasonally adjusted data.

The gross value added in the economy increased by 3.8% in 2016, mainly boosted by the agriculture, forestry and fishing sector, which posted a 1% growth.  The wholesale and retail sector plus the sector of maintenance and repair of motor vehicles expanded by 1.3%, while four other sectors - mining; manufacturing; transport and storage; information and communications grew by 0.4% each.

Final household consumption in Moldova expanded by 4.2%, while gross fixed-capital formation rose 1.2% in 2017.

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

In January, Moody's Investors Service said that Moldova's credit profile reflects the country's low economic strength, weak institutions and its vulnerability to external shocks. Moody's expects Moldova's economy to grow by around 3.5% in 2018.

Moody's last changed the outlook on Moldova's government bond rating one year ago, from negative to stable, and affirmed the country's B3 rating.

In December, the IMF decided to make available to Moldova $22 million (18.5 million euro) under the current three-year funding arrangement.

Moldova already received a total of $57.5 million in two tranches under the current three-year credit facility of $183.1 million, approved in November 2016.

(1 euro= 20.4229 Moldovan lei)