Moldova is a lower-middle income country, often labeled as “the poorest country in Europe”. Generally, poverty is concentrated among the rural population and is higher in the south and central areas of the country. It particularly affects families with many children and which include elder members.
However, there are countries with a higher income rate (Georgia, Armenia, Romania) that actually have a higher level of poverty than Moldova. In fact, Moldova has a comparatively equal distribution, mainly due to the phenomena of remittances. Remittances play a pivotal role in Moldova's economy, and they tend to target the poorest families that basically send people to work abroad.
Because of that, the incomes of Moldova's lower classes are increasing faster than the average, and that is why the country has been able to make quite remarkable progress in poverty reduction. But, it is important to stress that this spectacular advance has been based on unsustainable factors.
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