Moldova’s GDP contracted by a real 14% y/y to MDL44.6bn in Q2, the statistics bureau, BNS, announced.
In the first quarter of the year, Moldova’s economy edged up by 0.9% y/y.
In seasonally adjusted terms, Q2 GDP dropped by 7% q/q. The country’s GDP thus decreased for the fourth quarter in a row.
For the first half of the year, Moldova’s GDP decreased by 7.2% y/y.
The sector of services delivered to households contracted by 21.4% y/y in value added terms and contributed a negative 4.2pp to the overall performance of the GDP in Q2. Industry contracted by 11.7% and contributed a negative 1.7pp. Not a single economic sector posted positive growth. The net taxes collected by the government contracted by 22.7% y/y in the quarter.
On the utilisation side, private consumption of households plunged by 17% y/y in Q2. The gross fixed capital formation contracted by 15.6% y/y. Overall, domestic demand shrank more than the 14% overall GDP and this was possible because net imports diminished.
The only positive development was in foreign trade, where exports contracted less than imports: by 24.2% y/y versus 29.2% y/y. The use of foreign resources has thus decreased compared to the same period last year.