The shock of price increases: An expert explains why Moldova feels the crisis worse than other countries. The pessimistic forecast
Although, in recent times, prices have risen sharply, in virtually all countries in the region, Moldovans still feel the shock of price increases of four or even five times more. It is a finding of the economic experts from Idis Viitorul, who made a study on the level of poverty in our country. Thus, the specialists explain this by the fact that, practically, half of the income of our citizens goes to food, and the rest to services or travel.
“Why is the crisis worse in our country than in other countries? In a European country, food accounts for 15 percent of the population’s spending and has become 30 percent more expensive, but the impact on the budget is much smaller … So for them the burden is much lower, because he has a lot more money and spends less ”.
At the opposite pole is the situation in our country, says Ioniță. On average, a Moldovan spends about 40 percent of his earnings to eat, and among the socially vulnerable, the figure reaches 60 percent.
“This means that food has an impact on the citizen of the Republic of Moldova at least 4 times greater than in Europe. So, for us, the price increase has a shock several times higher ”.
About the same logic works when paying for the facts. That is, a citizen of the European Union was less affected by the increase in the price of gas or fuel, for example, than a Moldovan, who after food, the other part of the income a reserve for bills and travel expenses.
This year, economic experts estimate that Moldovans’ incomes will fall by 13 percent. It is an average figure, ie for some categories of citizens the decrease will be even higher. It is easy to understand that pensioners with a minimum income will suffer, first of all, but also those with much too low salaries, experts say.
Ionita claims that the minimum net salary in the economy should be at least 3700 lei, instead of 3266 lei as it is now. Thus, according to the study, currently, about 10 percent of employees have this income. Also 10 percent receive a salary of 25 thousand lei, approximately 1200 euros, per month, being included in the category, well paid, in our country.
Earlier, several experts said that the Republic of Moldova is the only country in the region that does not have energy sources, and this is reflected in the prices of products and services. It is one of the reasons for the high rate of inflation, which has reached 30 percent, about 10 percent higher than in Ukraine, which is at war.
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