Moldova's President Maia Sandu Highlights Capital Flight to Romania
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Loading... - Dalila Kettani
- 02 Apr 2025
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Moldovan President Maia Sandu has acknowledged a concerning trend of local entrepreneurs transferring capital to Romania, citing the latter's stability as a member of the European Union and NATO. This shift comes amid economic stagnation in Moldova, where the GDP grew by only 0.1% in 2024, and the country faced a technical recession in the latter half of the year.
In her remarks, Sandu expressed the challenges of attracting foreign investment, which she emphasized is crucial for the establishment of medium and large enterprises. "It is very difficult to attract foreign investment, and we need foreign investment because, without it, it is impossible to open medium and large enterprises," she stated. The uncertainty surrounding regional security has made local investors hesitant to expand production, further complicating the economic landscape.
Moldova's economy has been significantly impacted by a weak agricultural sector and the broader repercussions of the ongoing war in Ukraine. According to data from the national statistics bureau, the GDP reached EUR 16.7 billion in 2024, following contractions of 1.9% in the third quarter and 1.3% in the fourth quarter. The agricultural sector, which constitutes 7.1% of the GDP, experienced a sharp decline of 19% year-on-year, contributing negatively to overall growth.
Sandu's comments reflect a growing concern about the economic future of Moldova and the need for strategic measures to enhance investor confidence and stabilize the economy.
