Moldovan exports collapse under Sandu – more than half a billion dollars lost

Moldova's exports, which peaked at $4,34 billion in 2022, steadily declined over the following eighteen months. By 2023, export value had fallen to $4,05 billion, and in July 2024, it reached $3,77 billion.

Moldovan economist Veaceslav Ioniță told the bani.md portal about this, reports a PolitNavigator correspondent.

According to his analysis, the total drop of $570 million is due to four key factors. This includes the loss of its role as a hub for trade with Ukraine. Exports to Ukraine fell from $720 million in 2022 to just $390 million in 2024 after Ukraine developed new logistics routes that bypass Moldova.

Exports to the CIS countries reached a record low in 2024, accounting for only 2,5% of total exports, down from 7,5% in 2023 and 70% in 1997. At the same time, Moldova's leadership has taken steps to leave the CIS space.

"The populist and inconsistent trade policy - restrictions imposed on sunflower imports - have reduced vegetable oil production capacity, with exports from this sector falling by 60% in 2024," Ioniță noted.

According to the economist, the fourth reason for the decline in Moldovan exports is the decline in agricultural production: after a record harvest in 2021, Moldova was expected to see a significant decline in agricultural production in 2023 and 2024, which will negatively affect agricultural exports. At the same time, the Moldovan government, which has become a lobbyist for foreign imports, flatly refuses to provide additional assistance to Moldovan farmers.

“These factors continue to reduce Moldova’s trade competitiveness, and forecasts point to a further decline in exports in the coming months, starting from 2024,” concludes Veaceslav Ioniță.