On December 13, 2024, Invest Moldova Agency, in partnership with the Foreign Investors Association (FIA), launched Study 3.0. The Impact of FDI on the Economy of the Republic of Moldova. The study analyzes and highlights both the volume of global FDI and that of the Republic of Moldova, in particular, as well as the impact of investments on the economy.
Foreign direct investments (FDI) at the global level have been influenced by multiple crises and economic tensions, and the Republic of Moldova has not been spared from these challenges, being severely affected by the war in the region. However, the country managed to maintain a positive flow of investments, even though their values fluctuated. In 2023, net FDI flows totaled $357.2 million, marking a decrease from the record reached in 2022, when they amounted to $586.4 million.
In 2023, the total stock of FDI increased significantly, reaching $5.469 billion, a 10.6% increase compared to the end of 2022. The study highlights the growing importance of the contribution of reinvested profits by existing investors, reflecting their confidence in the country's stability and economic potential, as well as the profitability of their businesses in the Republic of Moldova.
Investments from European Union countries increased by 14%, exceeding the $3 billion mark for the first time. European investors maintain a dominant position, representing 84% of total FDI in Moldova. At the same time, the FDI stock accounted for 33.1% of GDP in 2023, a value higher than the average in the Eastern European region, highlighting the crucial role of these investments in supporting the national economy.
The impact of FDI on Moldova’s economy is evident in multiple aspects. The largest contributions came from industries such as material processing, trade, and financial services. Foreign capital companies have been leaders in productivity, with an efficiency 83% higher than local private firms.
From a labor market perspective, in 2023, foreign capital companies, even though they represent only 6% of the total companies in Moldova, employed 14.6% of the national workforce. The average salaries offered by FDI companies reached 14,200 MDL per month, which is more than twice as high as those offered by local private firms.
For more details, access Study 3.0. The Impact of FDI on the Economy of the Republic of Moldova 2023, available in digital format in the following link.
The study was prepared by Business Intelligence Services.