Overview

The pandemic, the energy crisis, and the refugee flows caused by Russia’s invasion of Ukraine starkly exposed the vulnerabilities of Moldova’s growth model to shocks. Moldova is one of the countries most affected by the war in Ukraine, not only because of its physical proximity but also because of its inherent vulnerabilities as a small, energy dependent, landlocked economy with close linkages to both Ukraine and Russia. The impacts of the war and price spikes have resulted in additional fiscal costs, squeezing resources for long-term development priorities. And the influx of refugees has also created a challenging socioeconomic environment in the medium term, especially if many remain but fail to find employment opportunities.

Moldova applied for EU membership in March 2022 and was granted EU candidate status in June 2022. In December 2023, EU leaders decided to open accession negotiations.

Source: World Bank 2023