FDI in Moldova decreased considerably

The foreign direct investment (FDI) attracted into the Moldovan economy in the first quarter of this year fell by $80 million compared with the corresponding period last year, to $48.6 million or 4% of the GDP. The outgoing First Deputy Prime Minister Igor Dodon explained it by the $41.1 million decline in the flows into the subscribed capital and by the $19 million rise in the capital outflows from other nonbanking economic sectors, Info-Prim Neo reports. At a meeting, Dodon expressed his regret at the fall in investment, which continued in the second quarter as well, especially after the FDI increased constantly during the last few years. In 2008, the FDI rose 5.6 times on 2000, from $127.5 million to $712.8 million. Independent economic analysts consider the fall in FDI is the result not only of the economic and financial crisis, but also of the shortcomings of the investment and business climates. Alex Oprunenco, of Expert–Grup, told a news conference that the improvement of the business climate must remain the top priority of the executive, as the promotion of structural reforms, many of which have been postponed owing to the long electoral campaign. The foreign and national businessmen say that the raids by the police, fiscal authorities and other inspections bodies have increased in number during the last half a year. For instance, the boutiques selling clothes and other consumer goods on Negustorilor St in Botanica district were closed the second time during July-August. The small entrepreneurs do not understand why. When invested, the Greceanyi Government II promised to simplify the procedure for obtaining authorizations for carrying out entrepreneurial activities, improve the fiscal policy and strictly regulate the number of inspections. But, as it had limited powers (the Parliament did not work), many of the members of the executive had been involved in the electoral campaign and the term in office was short, these problems could not be solved.