Conference MACRO 2018: “Moldova in 2018: making investments work for people and public good”
On October 19th, Woldemar Walter, Advisor to the German Economic Team Moldova, gave a lecture in the context of the conference ‘MACRO 2018’ on the influence of foreign direct investment (FDI) on the Moldovan economy, population and government.
As Woldemar Walter conclusively explained in his presentation, in Moldova, foreign direct investment, which is relatively low by international standards, has a major impact on the economy, the people and the government. For example, companies with foreign capital account for about 23% of total Moldovan value added and a high and growing share of exports.
In addition, these companies create jobs and pay significantly higher wages, a positive effect for the Moldovan population. The government benefits from foreign direct investment through tax revenues, as companies with foreign capital pay significantly higher taxes than local companies. The same results can be found for Ukraine.
FDI is good for Moldova, Woldemar Walter notes in his speech and recommends that the government continues to intensify its efforts to attract foreign investment.
The MACRO 2018 is a joint event of the independent think-tank EXPERT-GRUP and the Friedrich-Ebert-Stiftung. Every year the organisers analyse the current economic situation in a report published in parallel to the event. The conference title in 2018 is “The Importance of Investing for the Population and the Welfare of Moldova.” More than a hundred guests followed panel discussions by government officials as well as local and international experts and were subsequently invited to ask questions.