Moldovan authorities expect GDP growth to accelerate to 5.3% by 2028 thanks to EU financial support
CHISINAU. March 26 (Interfax) - Moldova's annual GDP growth could accelerate to 5.3% by 2028 if the reform program supported by EU funding of 1.9 billion euros is successfully implemented, Economic Development and Digitalization Minister Doina Nistor said.
"If Moldova effectively utilizes the proposed investment resources, it will lead to economic growth of up to 5.3% by 2028 and lay the foundation for even faster growth in the future," Nistor was quoted as saying by ipn.md during public consultations on the reform program for Moldova's Economic Growth Plan for 2025-2027.
The plan's main objectives include improving the business environment, sustainably stimulating investments, developing digital infrastructure and advancing green energy, she said.
The Economy Ministry estimates that, under the plan, the baseline forecast predicts Moldova's GDP growth at 1% in 2025, compared to 0.1% in 2024. Subsequently, GDP growth will accelerate as the program is implemented and EU investments are absorbed.
Moldovan authorities also anticipate that, alongside the utilization of the 1.9 billion euros in EU funding, the implementation of reforms could attract around 2.5 billion euros in private investment into Moldova's economy between 2025 and 2027. In this scenario, GDP growth is projected to accelerate to 6.1% by 2028.
It was previously reported that on March 18, the EU Council finally approved the creation of a 1.9 billion euro Reform and Growth Facility for Moldova.
The facility serves as the financial foundation for Moldova's Growth Plan, presented in October 2024. The plan envisions support for the country from 2025 to 2027, providing up to 385 million euros in grants and 1.5 billion euros in long-term, low-interest loans. Disbursements will be contingent on meeting strict reform-related conditions.
Moldovan authorities expect the first tranche of EU funds, amounting to approximately 200 million euros, to arrive in April this year.
