Moldova's Baby Debt: Low Birth Rate Meets Soaring Public Debt

Moldova's 2024 Birth Rate Plummets Amidst Soaring Public Debt: Contrasting Views Emerge Moldova faced a stark reality in 2024: its lowest birth rate in two centuries, coupled with a substantial increase in public debt. Former Prime Minister Vlad Filat ignited a debate with his recent economic analysis, revealing a concerning statistic: newborns in Moldova are inheriting over 36,500 lei of public debt per capita. "This is the most expensive collective birth in Moldova's history," Filat stated, emphasizing the stark contrast between the declining birth rate and the rising debt burden. He further criticized the previous government's policies, arguing that borrowing had become a form of public policy, doubling the debt in a short period. However, Doina Gherman, vice-president of the Parliament of Moldova, offered a counter-narrative. She highlighted the government's investments in infrastructure and social programs, stating, "In the last four years, the PAS government has implemented unprecedented projects in Moldova, with the help of development partners." She pointed to doubled average salaries, a 150% increase in pensions, and substantial child birth allowances as evidence of positive economic progress. While the statistics paint a complex picture, economists note that Moldova's household debt remains significantly lower than the European average, suggesting a nuanced reality beneath the headline figures. The debate highlights the need for a thorough examination of Moldova's economic policies and their long-term impact on its citizens.