The retail sales volume in Moldova remained roughly constant in the first seven months of 2022 compared to the same period of 2021, as households expect their energy bills to increase as the state has no longer the resources to keep them within a more or less acceptable range during the coming winter.
The record inflation, of over 30%, has also dragged down households’ capacity to consume.
In July, retail sales contracted by 6.3% y/y, at comparable prices. In nominal terms, however, households spent 22.3% more compared to the same month of 2021.
Notably, the stable exchange rate made imported goods comparatively more affordable — and this already surfaced in the country’s trade deficit.
Moldova’s foreign trade deficit widened by 32% y/y to $423mn in July, after it inched up by only 1.3% y/y in Q2 helped by impressive exports (+90% y/y).
As regards the volume of retail sales from a broader perspective, it has stabilised over the past year around a constant level (comparable prices). The outlook is defined by sluggish economic growth and high energy costs.