Republic of Moldova: Selected Issues

This Selected Issues paper examines metrics of Moldova’s export performance, including diversification, export relationships duration, and export quality and complexity. Deeper trade integration with the EU has clearly benefited Moldova’s exports. International experience highlights the importance of diversification for raising growth and reducing volatility, especially for small open economies. The analysis suggests that Moldova’s export model is at an important turning point. Longer lived export relationships with the EU, improved quality distribution, and growing participation in certain manufacturing segments point to emerging strengths. EU membership could amplify existing positive trends but will not automatically overcome structural constraints. The EU Reform and Growth Facility provides a timely opportunity to align public investment with these priorities. Focused use of concessional EU resources to address infrastructure bottlenecks, expand quality infrastructure, and support firm-level upgrading can help crowd in private investment and accelerate integration into European value chains.