Robust growth despite constitutional issues
Overview:
The government continues to implement the IMF program well and is now presiding over a period of robust economic growth. Both domestic demand and exports are booming. The worsening global economic outlook may take some gloss off the growth numbers going forward but they should remain robust. Fiscal adjustment is proceeding well with the budget deficit and public debt to GDP both low. Problems remain in some areas. The current account deficit is growing and inflation is rising. A combination of tighter fiscal and monetary policies and the implementation of structural reforms will be necessary to address these issues in the short and medium-term. There is still no prospect for the constitutional crisis to be resolved and the announced restart of talks on Transnistria still faces many hurdles.