Moldova - IFAD
The Context
The Republic of Moldova is a small landlocked country bordered by Ukraine and Romania. Remittances are crucial for developing the economy, accounting for 12.2 per cent of GDP. Economic growth, remittances and social assistance have significantly reduced poverty.
However, the war in Ukraine has greatly affected Moldova, triggering socioeconomic and energy crises. Inflation has drastically increased the costs of agricultural inputs, such as fertilizers and seeds. Crop exports have also been disrupted.
Moldova’s population is shrinking and ageing, resulting in low productivity growth and an increasing reliance on social assistance. Rural migration, particularly of young people, has also affected the economy and social fabric of Moldova. There is a need to create employment opportunities and develop the rural economy to stem the outflow of migrants.
The Strategy
IFAD promotes more resilient livelihoods in marginal rural areas by supporting climate-smart agriculture and infrastructure, economic diversification, agricultural processing, talent retention and access to rural finance. We develop links between agricultural producers, markets and suppliers.
There is a strong potential to revitalize crop production and processing for both domestic and export markets.
Country Facts
- Agriculture and food processing constitute around 18% of GDP and 45% of export revenue.
- Personal remittances account for 12.2% of GDP.
- Russia's invasion of Ukraine is estimated to have driven poverty up to 31.1% in 2022.
Experts
Programme Officer
[email protected]