The Demographic Situation in the Republic of Moldova: The Ticking Time Bomb Effect

Moldova is undergoing a demographic transition with a double set of constraints. First, the population is shrinking at an alarming rate, against the backdrop of negative natural growth in rural areas and emigration processes. Second, the age structure of the population is deteriorating, as the share of the elderly population grows and the share of the young population in the total population declines. This phenomenon is even more acute in rural areas and is set to intensify in the future, while the fiscal implications are imminent. Thus, as payments from the State Social Insurance Budget (BASS) rise for a growing number of pensioners, in parallel with the erosion of the tax base, the pressures on the public pension fund are far from trivial. The repercussions of demographic trends are already visible, as only 2 contributors finance the pension paid to one pensioner (the minimum necessary ratio is 4 to 1), while over recent years the BASS has consistently recorded a deficit that is covered from the State budget. This infographic was produced by Opera Studio, commissioned by the Independent Think Tank “Expert-Grup”, in partnership with the Friedrich Ebert Foundation. The information is based on the findings of the State of the Country Report 2013. Data source: National Bureau of Statistics and the results of the survey “Has Moldova Become a Place Without Hope?”