Moldovan president Maia Sandu has acknowledged that some local entrepreneurs are transferring capital to Romania due to its stability as a European Union and NATO member state.

Speaking about the country's economic stagnation in 2024, when GDP grew by only 0.1%, and the technical recession in the second half of the year, Sandu highlighted concerns over regional security and investor confidence, NewsMaker reported.

"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," Sandu said.

She added that local investors are also hesitant to expand production amid uncertainty over the security situation in the region.

Moldova's economy was primarily affected by a weak agricultural sector and the broader impact of the war in Ukraine. According to data from the national statistics bureau, GDP edged up to EUR 16.7 billion in 2024, following contractions of 1.9% year-on-year in the third quarter and 1.3% in the fourth quarter. Agriculture, which accounts for 7.1% of GDP, saw a sharp decline of 19% year-on-year, contributing a negative 1.3 percentage points to overall growth.

(Photo: Breeze393/ Dreamstime)

iulian@romania-insider.com