Social situation Remittances as a key source of income

Show image information

Russia’s war of aggression against Ukraine has made the social situation in Moldova even worse. The sharp rise in the cost of living has led to a strong increase in the number of poor people in the country. Some 30 per cent of the country's 2.5 million people are living below the national poverty line; in rural areas the rate is even approximately 40 per cent. There are deficits, in some cases severe deficits, in areas such as drinking water, sanitation, and healthcare. One group that is particularly affected by social exclusion, poverty and unemployment is the ethnic minority of the Roma.

The taking in of roughly 120,000 refugees from Ukraine (as at September 2024) – mostly women, children and elderly people – is putting additional pressure on the social, health and education systems.

Many Moldovans migrate to Western Europe or Russia for jobs. The population of Moldova has continuously decreased since 1991 – with negative consequences for the tax and pension system and for the productivity and competitiveness of the private sector, which is faced with a shortage of skilled labour. The employment rate is low. Only roughly 45 per cent of the people over the age of 15 were in work in 2023 (Germany approximately 77 per cent), with the informal sector accounting for some 25 per cent. The economy and the population are heavily dependent on migrant remittances, which are the main source of income for many families.