Moldova Revamps Industry: Aims for Higher GDP Share
The Moldovan Cabinet of Ministers has approved the National Industrial Development Program, which establishes the strategic vision and key directions for the medium-term development of the country's manufacturing industry.
The program aims to increase the industry's contribution to the Gross Domestic Product (GDP) from 8.2% in 2023 to 11.5% by 2028.
Key Initiatives of the Program:
- Enhance governance and modernise institutions within the sector.
- Mobilise capital and labour to support industrial growth.
- Attract investments through measures that comply with European Union regulations on state aid.
- Stimulate productivity and facilitate the transition to a green and digital economy.
- Integrate Moldova's manufacturing sector more effectively into the European single market.
Addressing Challenges and Seizing Opportunities:
The lack of a cohesive industrial development strategy has previously discouraged investment in Moldova. The new program seeks to address this issue by proposing measures designed to support businesses and attract investment.
Moldovan industry has been in decline in recent decades, with average salaries in the sector falling considerably lower than the average for the entire economy. The program aims to reverse these trends by boosting productivity and creating jobs with higher salaries.
Currently, Moldovan industry is primarily oriented towards the domestic market, with only 35% of industrial production exported. The program seeks to enhance the competitiveness of Moldovan products on the global market, thereby increasing export volumes.
Expert Opinions:
Sergiu Harea, President of the Chamber of Commerce and Industry, welcomes the program and emphasises the need for government support and cooperation with businesses.
Economic expert Victor Ciobanu believes that the authorities should prioritise investment in a select few key sectors, such as the processing industry, which can leverage Moldova's abundant agricultural raw materials.
The National Industrial Development Program is an ambitious initiative that could significantly transform Moldova's economy. The program's success will depend on its effective implementation and the continued commitment of both the government and the private sector.
Translation by Iurie Tataru
