Top 5 Economic Successes and Failures in 2014 and Top 5 Challenges for 2015

According to Expert-Grup, 2014 was marked by populist economic policies that intensified ahead of the parliamentary elections. The successes include the signing of the EU Association Agreement, with at least EUR 500 million in assistance over three years, and visa-free travel for Moldovans. GDP grew by 4.7% in the first three quarters, against a high base (9.4% in 2013). The Iași-Ungheni gas pipeline and the new Education Code were also noted. Failures include worsened relations with Russia, dubious banking transactions, unimplemented IMF financial sector recommendations, a lower stock of foreign direct investment and populist measures at the expense of reforms.

For 2015, the main challenges are a fragile pro-European majority, the Transnistrian region’s self-isolation, instability in Ukraine, Russia’s recession and a larger budget deficit. Expert-Grup urges the next Government to revive justice reform, continue education reform, overhaul public sector pay and reform social insurance.