Quality over quantity: Foreign investors offer double the wages in Moldova as FDI stock hits $5.47 billion
While global foreign direct investment (FDI) flows plunged by 11% in 2024, Moldova maintained a stable course, with 86% of foreign equity originating from the European Union. This trend, highlighted in the "FDI Impact Study 4.0," signals an accelerating economic convergence between the Republic of Moldova and Western standards.
The study, released by the Invest Moldova Agency and the Foreign Investors Association (FIA), reveals a net inflow of $458.4 million in 2024. This brings the total FDI stock to a robust $5.471 billion (approx. €5.16 billion or 107.2 billion MDL), driven primarily by the reinvested profits of existing stakeholders.
Economic impact: Double wages and record productivity
Despite representing only 5.7% of all Moldovan companies, FDI-backed firms punch far above their weight. They generate 23.2% of national turnover and contribute over 23% of total corporate income tax, acting as the primary engine for the country's public budget.
The social impact is equally significant for the local workforce. Productivity in FDI enterprises is roughly 74% higher than in local private firms, while the average monthly salary offered is approximately 93% higher—effectively doubling the local market rate.
Challenges and the path to high-value growth
While the FDI stock per capita has doubled since 2015 to reach $2,277, Moldova still sits at the lower end of regional rankings. Experts warn of a stagnation in "greenfield" projects, emphasizing that new capital is essential for the transition to a high-value-added economy.
To bridge this gap, the study recommends a coherent policy package. Key priorities include increasing business predictability, modernizing critical infrastructure, and supporting high-tech projects in IT&C and energy to mitigate perceived geopolitical risks.
A volatile global backdrop
Moldova’s stability stands in stark contrast to developed economies, which saw a 22% drop in investment, including a massive 58% collapse in Europe. As multinational companies prioritize risk management over expansion, Moldova’s ability to retain EU-based capital serves as a critical vote of confidence in its structural reforms.
Translation by Iurie Tataru
