Page 104 - SE Outlook Regions 2023

The construction cost index increased by an annual 19.8% in the
second quarter of 2022 from 24.6% in the previous quarter.

It increased 2.2% on a quarterly basis in 2Q22 from 11.5% in the
previous quarter.

3.5.6 Major Sectors

Agriculture is one of the most important sectors for Kosovo’s economy.

According to surveys Kosovo had agricultural land of 420,327 hectares
in 2021 of which the largest part belonged to meadows and pastures
(51.65%), while arable land participated with 44.82%.

3.6 Real economy - Moldova

3.6.1 Retail
Moldova’s buoyant private consumption posted an average growth rate
of 5.5% over the five-year period to 2021 (when it surged by 10%), but
was severely hit by the shrinking disposable income that was
compressed by both inflation and high energy bills.

Thus, the average retail sales (volume terms) in the 12-month period to
October 2022 decreased by 0.6% y/y after the growth rate came into
the negative area in September (-0.1% y/y). The rising wage
remittances couldn’t offset the drop in domestic incomes. The average
wage in Moldova, already very low by European standards, dropped by
another 11.5% in real terms in 2022 amid rampant inflation of over 30%
y/y during most part of the year.

The outlook for 2023 remains bleak for private consumption, even if the
inflation is easing. The average wage is expected to further drop in real
terms, even if a certain overall economic recovery is possible.

104 SE Outlook 2023 www.intellinews.com