The political and economic instability in Moldova in the recent past determined a restrained investment behavior. Even if the direct investment flows into the national economy in the second quarter of the year trebled, these benefitted a limited number of companies, mainly from the agricultural products cultivation and distribution sector and the banking sector, said experts of the Independent Think-Tank “Expert-Grup”.
“At regional level, the Republic of Moldova is a loser in the investment attraction race. This shows the shortcomings existing in the business sector of the country haven’t been systemically addressed in time. This is confirmed by the Republic of Moldova’s modest scores in international rankings that characterize our country’s economic situation and its attractiveness to investors,” says the publication “Economic Reality: top ten economic events of 2019 and top ten challenges for 2020” that is quoted by IPN.
The experts said Moldova’s exports in January – October rose by only 3.4%. The supplies to Turkey increased, those to the EU decreased, while exports to the CIS reached positive values owing to the rise in re-exports. The concentration of exports from geographical viewpoint and as regards the structure of exported products generates concern. The given exports incorporate a rather low added value, which points to the low competitiveness of the national producers. This undermines the sustainably of exports on the whole.
“Expert-Grup” noted that the transfers from abroad in favor of Moldovans in the course of 2019 continued to diminish. The statistics of net transfers adjusted to season, which are published by the National Bank of Moldova, show the amounts declined almost each month, except for April and September, compared with the corresponding period last year. Cumulatively, the net transfers adjusted to season in the first ten months of 2019 decreased by 5%. This decline is sensitive for the Moldovan households as the transfers account for 15% of the budget of an average family, while in rural areas for even 20%. The diminution of transfers was yet offset by the about 10% rise in salaries in real terms in the first half of 2019.
