Political crisis could affect the country's economy, say experts

According to an analysis published on PoștadeȘtiri, Moldova's political crisis could affect the country's economy. 

"What could be bad for our economy happened already. After electoral campaign, a long-lasting post-electoral period, our country has to face now with an enormous political crisis. This crisis was resulted from not only incapacity of the parties to form governing alliance but also pockets packed with explosive, which anytime can detonate, generating local and regional instability. 

Large investment projects are preserved, limited employment, expensive cuts, ie demanding resource management. Moreover, capital has a tendency to emigrate to more favorable areas, including dividends from the domestic market and for development. But the population, from a hereditary self-consciousness, reduces, as much as possible, consumption and spending, with immediate effects in the market.

Current consumer credit, as well as purchasing longer-term goods (furniture, home appliances, etc.), is no longer in the same way as investment credit. Effects are transmitted gradually from one sector to another, a chain infection, a true domino effect.

Then the crisis is becoming more and more felt in the public finances and pockets of those who depend on the budget, whether they are employed or socially assisted. The labor market becomes less flexible, wages are preserved, including in the private environment, and purchasing power is eroded.


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