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Republic of Moldova: First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility and Requests for Waiver of Performance Criterion and Augmentation of Access - Staff Report; Staff Supplement; Press Release on the Executive

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Republic of Moldova: First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility and Requests for Waiver of Performance Criterion and Augmentation of Access - Staff Report; Staff Supplement; Press Release on the Executive

4.85 51,777 Ratings
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Editor's Note:
1. Moldova experienced strong growth over 2006-08, accompanied by signs of overheating. Growth averaged 5 percent, boosted by remittances and foreign investment. Buoyant domestic demand, however, pushed the current account deficit to 17 percent of GDP and generated inflation pressures. These pressures, together with large inflows, resulted in substantial appreciation of Moldova's real effective exchange rate (REER). Monetary policy kept real interest rates low despite double-digit inflation (Figure 1). Although fiscal policy maintained a small headline budget deficit under the IMF PRGF-supported program, it grew increasingly procyclical, with the estimated structural balance deteriorating from a small surplus in 2005 to a deficit of over 4 percent of GDP by 2008.

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Length 89 Pages
Imprint Not Avail
Released February 6, 2007
Identifier (ISBN) 16325437
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