Analysis of Constraints to Economic Development

Current macroeconomic risks are not quite severe. Moldavian economy has stabilized in the recent years but external vulnerabilities remain a challenge. Its also influence the rise in the national debt and external deficits which are one of the most acute macroeconomic issues. Inflation has declined to single digits but it remains a threat.Yet Moldavian economy runs very large current account deficits reflecting high investment demand. The composition of inflows have been favorable nevertheless developments in external accounts should be monitored to avoid building up of excessive risks.