Decline in the Moldovan industry is registered for the 3rd consecutive year, and this stagnation is the result of the lack of a consistent industrial policy - Veaceslav Ionita
Economic expert of the Institute for Development and Social Initiatives (IDIS) Viitorul expressed this opinion while commenting on the data on the Moldovan industry for the last year, presented last week by the National Bureau of Statistics. Veaceslav Ionita noted that the industrial sector has been shrinking for the 3rd consecutive year. According to him, in fact, over the last 5 years, only in 2021 the Moldovan industry registered growth, while in the other 4 years there was a decline. During this 5-year period, the industry shrank by an average of 0.8% annually, although 2021 brought a significant growth. The expert emphasized that if we consider a broader historical perspective, in 1999 Moldova's economy reached the lowest point of decline after 1990, and since then the annual growth rate has been around 2.9%. However, Moldova's industry is currently operating at only 64-65% of 1990 levels. “If the current growth rates are maintained, it will not be until 2040 that we will be able to return to the industrial level of 35 years ago, which raises questions about the future of the industry,” Veaceslav Ionita noted. In his opinion, this stagnation is the result of a long absence of a coherent industrial policy. “The lack of a strategic vision hindered the modernization and development of the sector, leaving Moldova in a vulnerable position from an economic and industrial point of view. After 35 years, the sector has still not been able to regain its former positions and the prospects for recovery are uncertain,” the economic expert said. As possible options for improving the situation he named the following: development of an active industrial policy - providing industry incentives, tax benefits, investment in infrastructure and digitalization; diversification of production - development of sectors with growth potential, such as IT-industry, agribusiness and processing of raw materials; investment in education and research - increasing the competitiveness of the industry depends on innovation and adequate training of the workforce; international partnership - attracting foreign investors; and the development of new industries. “Without concrete and targeted measures, Moldova's industry risks getting stuck in stagnation, which will affect the country's long-term economic prospects,” Veaceslav Ionita emphasized. // 24.02.2025 - InfoMarket.
