FDI in Moldovan economy recover, but still behind those in neighboring countries
In Moldova, foreign investment inflows began recovering after a dramatic decrease in 2009, making up 199 million dollars in 2010. But this figure is much under the level recorded in 2008 before the crisis, when the FDI totaled US$713 million, Info-Prim Neo reports, quoting the World Investment Report for 2011.
According to the report, the FDI stock in Moldova during the independence years rose to 2.8 billion dollars. However, Moldova lags far behind neighboring countries and main trade partners. In Romania, the FDI stock exceeded 70 billion dollars last year, and in Ukraine – 57 billion dollars.
In contrast to countries from the region, Moldova was less attractive for international acquisitions and mergers, the value of such transactions making up 15 million dollars in the last five years analyzed in the report, while Romania reached 4.5 billion dollars, and Ukraine – 9.2 billion dollars.
The global investment flows in 2010 rose by 5% to US$1.24 trillion. The FDI last year were by 15% lower than the average for the period before the crisis. The flow of foreign direct investments decreased in 2010 in South-East European economies in transition, partially because of the decrease of investment volume from European Union countriesб while in the Commonwealth of Independent States the FDI flow has insignificantly increased
Kalman Kalotay, a representative of the United Nations Conference on Trade and Development, said the global investment flows may reach the level recorded before the crisis towards 2013. This will happen if the U.S. manages to avoid a default, a number of EU member states overcome the budgetary constraints and there will be no other centers of financial and economic instability in the world.
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