Financial assistance

GIEWS country profile: Republic of Moldova 22-October-2021 – Moldova


FOOD SECURITY OVERVIEW

  • Cereal production above the average forecast for 2021

  • Total cereal exports in 2021/22 forecast above average

  • The local economy is gradually recovering from the aftermath of the COVID-19 pandemic and the 2020 drought

Cereal production above the average forecast for 2021

Harvesting of the 2021 winter grains, mainly wheat, was completed in August. Wheat production is set at around 1.6 million tonnes, nearly three times the level of the previous year and more than 40 percent above the five-year average, following favorable weather conditions during campaign that boosted yields from drought-reduced levels of 2020.

Harvesting of maize (a spring crop) continues under generally favorable weather conditions and production is forecast at around 2 million tonnes, well above the 2020 production and average level due to the amounts of rainfall and near-average temperatures during the season which are expected to result in high yields.

Harvesting of the other spring grains, mainly barley, was completed in September and production is estimated to be near average.

Total cereal production in 2021 is estimated at around 4 million tonnes, 38 percent above the average level.

Planting of the 2022 winter grains continues under generally favorable weather conditions and the harvest will be harvested from July next year.

Total cereal exports in 2021/22 forecast above average

Total cereal exports for the 2021/22 marketing year (July / June) are estimated at around 1.7 million tonnes, well above the five-year average volume.

Due to forecasts of large harvests in 2021, wheat and corn exports are officially estimated at 800,000 tonnes, well above average volumes.

The local economy is gradually recovering

The negative effects of the COVID-19 pandemic which resulted in the loss of jobs, income and remittances, coupled with the effects of the 2020 drought on agricultural production achieved last year, had severely affected the economy, in particular the sectors of commerce, agriculture and tourism. Gross domestic product (GDP) is estimated to have declined by 7% in 2020. According to the International Monetary Fund (IMF), GDP is expected to increase by 4.5% in 2021 due to the gradual recovery of most economic sectors. . However, economic growth could be slowed by recent uncertainties over the country’s natural gas supply and rising fuel prices.

On June 2, 2021, a Economic recovery plan was launched by the European Commission and will mobilize around 600 million euros (around 700 million US dollars) between 2021 and 2024 in the form of macro-financial assistance, grants and investments to stimulate the long-term socio-economic recovery of the country .


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