IMF says Moldova's economy has unique growth opportunity, but reforms needed

By Alexander ‌Tanas

CHISINAU, Dec 17 (Reuters) - Moldova has a "unique opportunity" for economic growth, but fundamental reforms are ‍needed and ‌the conflict in neighbouring Ukraine creates additional uncertainty, the International Monetary Fund said on Wednesday.

Alina ⁠Iancu, the IMF's mission chief for Moldova, ‌said the prospect of the country's bid to join the European Union would help boost growth this year despite the difficulties linked with the nearly four-year-old war in Ukraine and energy price hikes.

"EU membership and ⁠the EU growth plan provide a unique opportunity for growth in productivity, for stimulating long-term growth and improving living ​standards in Moldova," Iancu said at a press conference after a ‌two-week visit to the former Soviet republic.

But ⁠in order to exploit that opportunity, she said, Moldova has to implement "decisive reforms" to eliminate structural problems and oversee "effective management at the macroeconomic level".

Iancu said after a weak performance ​in 2024, Moldova could expect 2.7% economic growth this year, boosted by a better-than-expected harvest and high levels of consumption and investment.

The significant financing foreseen in the EU's growth plan for Moldova, which was adopted last year, will help shield households and industry from recent energy ​price rises, ‍Iancu said.

She said inflation was ​steadily declining from the peaks registered earlier this year after energy price shocks and was likely to return to the central bank's target of 5%.

But she added that the country's balance of payments deficit was likely to remain high because of large imports of energy and other goods.

Faster implementation of reforms and a more favourable international outlook could offset economic uncertainty, Iancu said.

Moldova ⁠recorded GDP growth of 2.0% over the first nine months of 2025, higher than the 1.3% forecast by the country's Economy Ministry. Year-on-year ​inflation stood at 6.99% over the first 11 months of 2025, with the country's central bank forecasting it would be 7.7% for the full year.

Prime Minister Alexandru Munteanu, quoted by the government press service on Wednesday, told the visiting mission that ‌Moldova hoped to clinch a new programme with the IMF after the expiry of the last 40-month programme in October 2025.

(Reporting by Alexander Tanas; Writing by Ron Popeski; Editing by Paul Simao)