The fate of the world economy depends on the outcome of the conflict in the Middle East, which is already holding back its growth. In the future, it could trigger recessions and significantly higher inflation, said the Organization for Economic Cooperation and Development (OECD).
The Moldovan government is raising the cost of domestic borrowing. The Ministry of Finance announced the launch of a new subscription round for government securities (GS) for the period from June 2 to June 14, 2026 through the eVMS.md platform. The fixed interest rates for all subscription terms for government securities (GS) for individuals from the May subscription round remain increased from 7.45% to 7.85%, making investments for citizens more attractive and profitable compared to bank deposits.
In the first quarter of 2026, the average monthly wage in Moldova decreased by 2.3% compared to the last quarter of 2025, although in annual terms it continued to grow. The decline is due to the high base effect: bonuses and annual bonuses are traditionally paid at the end of the year, so there is a seasonal decline at the beginning of the following year.
The European Commission said that it was not ready to transfer the first tranche of the €90bn loan approved for 2026-2027 to Ukraine. According to the official version, the delay in the disbursement of the first €9.1bn, which should have been received by Kiev by the end of June, was caused by its failure to fulfill “all the technical requirements” of Brussels.
The National Bureau of Statistics (NBS) has published updated data on poverty measurement according to a new methodology, according to which last year’s figures look much better than those presented earlier. Both monetary and non-monetary poverty, according to the NBS, are retreating, but not losing ground in Moldova.
In January-March 2026, the volume of investments in long-term assets in Moldova significantly decreased. In annual terms, capital investments amounted to 6.2 billion lei, decreasing overall by 2.4%. This statistic reflects the general decline in the investment activity of businesses at the beginning of the year, despite the stimulus programs included in the state budget.
The indicator significantly exceeded the ECB’s target of 2%. The main reason was energy price inflation, which rose by 10.9% year-on-year. The preliminary data paves the way for an ECB interest rate hike at next week’s meeting. Before the conflict in Iran, inflation in the eurozone was below 2%.
The euro’s share of the global market rose slightly to around 20%, lagging far behind the dollar despite inconsistent US policy. Investors are refocusing on gold and smaller currencies, with gold’s share of total reserves exceeding the euro and government bonds. ECB President Lagarde is calling for reforms in the EU to make the euro more attractive and sustainable globally.
The index of business activity in the eurozone manufacturing sector, according to S&P Global surveys, fell to 51.6 in May from 52.2 in April, hitting a two-month low. The slowdown came amid stagnant new orders in May, which offset a record four-year rise in sales in April. Export orders for production declined during the month.
Moldova needs a comprehensive fiscal reform aimed at broadening the tax base while preserving the scope for increasing public spending, especially on wages and investment. The tax base should be broadened by eliminating numerous tax exemptions, especially those resulting from the differentiated VAT rate, and by combating the informal economy.
Moldova strengthens protection of the capital market ecosystem. National legislation updates the guarantees for collective investment organizations in line with European realities. These will include guarantees of equality regardless of the country of origin of capital, protection against expropriation, guarantees of freedom of financial transactions and protection in derivatives.
Turkey’s economy slowed in the first quarter. The central bank tightened monetary policy to reduce risks associated with the conflict with Iran. The shock caused volatility in the energy market and complicated the Turkish central bank’s efforts to curb inflation. Turkey imports a significant amount of oil and natural gas, making its economy particularly sensitive to changes in global energy prices.
The European Union has started discussing possible ways to support Euroclear depository after the Russian court ruling on the recovery of losses related to the blocking of Russian assets.
The debate about whether the orthodox methodology of central banks’ containment of inflationary pressures should be followed in view of the “hard times” in the world is heating up with renewed vigor. Experts are questioning whether the role of money should be given so much importance and when it should be done. And what is more important here – canons or common sense.
The U.S. Space Force said Friday it has struck a $4.16 billion deal with Elon Musk’s SpaceX for a program to build satellites designed to track and defeat aerial threats.
A Federal Reserve (Fed) spokesman cautions against viewing the oil shock as temporary, believing that policy tightening is possible if inflationary pressures do not abate. This could include not only a change in interest rates, but also a review of the Fed’s use of the balance sheet.
A drone hit a residential high-rise building in the eastern Romanian city of Galati, the Inspectorate for Emergency Situations said. The impact caused an explosion. A fire started in one of the apartments. According to preliminary information, two people were injured. About 70 residents were evacuated from the building, some of them left the building on their own.
How far does our banking autonomy extend? This and other questions were answered by the Governor of the National Bank of Moldova (NBM) during the Conference of Heads of Central Banks of Francophone Countries, which is taking place in Phnom Penh, the capital of Cambodia. The conference is dedicated to the theme: “Autonomy of the central bank in the conditions of state and public expectations”. The Moldovan governor’s position is understood by the head of the European Central Bank, Christine Lagarde, which was confirmed by both sides in the Memorandum of Understanding and Cooperation between the ECB and the NBM, as well as in a personal meeting.
Global energy inflation will be delayed for a longer period of time due to the conflict in the Middle East and supply disruptions. Experts forecast that high oil and gas prices will act as a driver of overall price growth and stagflationary processes until at least the end of 2027.
Foreign direct investment (FDI) inflows into the European economy in 2025 rose by 56% to $239 billion, according to data from the UN Conference on Trade and Development (UNCTAD). However, this surge is caused by specific factors and hides a decline in the real investment sector. Major cross-border mergers and acquisitions (M&As) accounted for most of the growth. Much of the capital came from corporate restructuring and transit financial flows.
