CHISINAU (Moldova), January 12 (SeeNews) - Moldova's economy is expected to grow by 3.9% in 2022, the World Bank said, increasing its previous forecast by 0.2 percentage points.
The World Bank sees Moldova's economy growing by 6.8% in 2021, compared to a 3.8% forecast made earlier, it said in its January 2022 Global Economic Prospects report published on Tuesday.
In 2023 Moldova's gross domestic product (GDP) is expected to expand by 4.4%.
The sub-regional economy of Eastern Europe, which includes Moldova, Belarus and Ukraine, is projected to be the weakest among the Europe and Central Asia (ECA) subregions, its growth decelerating to 1.4% in 2022 from 3.1% in 2021.
The subdued outlook, particularly for private investment, reflects ongoing geopolitical tensions in Ukraine and the impact of economic sanctions on Belarus’s economy, which is expected to contract in 2022, the lender noted.
"Assuming geopolitical tensions do not escalate further, improving domestic demand should help lift output in Eastern Europe to 3.2% in 2023. Longer-term growth prospects are constrained by sluggish reform momentum, which has hindered competition and private-sector development," the World Bank also said.
(1 euro = 20.3005 Moldovan lei)