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Moldovan economics ministry says contribution of Free Economic Zones to national economy's development increases

14:13 | 30.10.2020 Category: Economic

Chisinau, 30 October /MOLDPRES/ - The contribution of the Free Economic Zones (FEZ) to the development of the national economy records an ascendant dynamic, despite the pandemic crisis. This is the conclusion of a report on the work of FEZ in the first half of 2020, elaborated by the Economics and Infrastructure Ministry (MEI).   

According to the report, in the first semester, seven FEZ worked in Moldova, with 34 subzones and 213 residents. The number of residents grew by 8 firms or by 3.9 per cent. At the same time, the number of employees of the FEZ’ residents stood at 16,463 people in the end of the reporting period; thus, a decrease by 329 people or 2 per cent was registered against the similar period of the year before.        

„The overall value of the investments made in Free Economic Zones during their work till 30 June 2020 was 453 million dollars, increasing by 9.3 per cent or 38.5 million dollars in the first half of this year. More than 48 per cent of all investments belong to FEZ Balti, 19.5 per cent – to FEZ Ungheni-Business, 16.1 per cent – to the Expo-Business-Chisinau Free Entrepreneurship Zone (ZAL), 4.1 – to ZAL PP Taraclia, 5.4 per cent – to ZAL PP Valkanes and 2 per cent – to ZAL PP Otaci-Business,’’ the document reads.      

An investment worth 97,400 dollars went to one resident in the first half of 2020. The highest value of this index was recorded in Fez Balti (187,400 dollars/resident), followed by FEZ Ungheni-Business (117,700 dollars) and ZAL Tvardita (88,700 dollars).  

„In the economic zones, the priority activity kind is the industrial one. In the first half of 2020, the total value of goods produced and services provided in FEZ amounted to about 4.9 billion lei, of which the share of the industrial production accounted for 94.3 per cent. The incomes from the sales of industrial production in the first semester dropped by 19.7 per cent against the same period of the previous year in all Free Economic Zones and amounted to 4,615.2 million lei. Most industrial production made in FEZ, worth 4,294.2 million lei or 93 per cent, was exported,’’ the MEI report reads.    

The main products made by FEZ residents are electric wiring for touring cars, electric conductors, articles of furniture, upholstery from synthetic material for chairs of the type of those used for vehicles, carpets, porcelain ceramic tile, nets of fiberglass, salami and sausages, etc.    

Under the document, the COVID-19 pandemic hit the work of the FEZ residents. This prompted a diminution of the incomes from the sale of industrial production by 19.7 per cent against the same period of the year before, decrease by 25.3 per cent in the value of goods and services produced in FEZ in the first semester of 2020 and exported, as well as the diminution of the external commercial activities by 38.6 per cent.  

According to MEI, despite the pandemic crisis, nevertheless, the FEZ contribution to the development of the national economy has important shares. Thus, 21.1 percent of Moldova’s overall exports in the first half of 2020 were generated by the goods made at Free Economic Zones. The share of exports at FEZ of the country’s total export registered a decrease of 1.8 percentage points against the first semester of 2019.   

Photo: MEI

 

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