Economy minister says Moldova faces historic opportunity for economic development

Moldova is facing a historic opportunity for accelerated economic development. According to Deputy Prime Minister, Minister of Economic Development and Digitalization Doina Nistor, the growth plan supported by the European Union gives the country the chance to bridge economic and social gaps at an unprecedented pace.

"We have the opportunity to invest in the country's development in a much shorter time and achieve social and economic convergence. For the economy, this plan will lay the foundations for sustainable growth, with an estimated growth rate of 5 per cent by 2028 and the ambitious goal of doubling the Gross Domestic Product (GDP) over the next decade," Doina Nistor said during a show broadcast at the public radio station Radio Moldova today.

Strategic investments in infrastructure and business

The first installment of 270 million euros from the 1.9 billion promised by the EU will be primarily directed towards basic infrastructure: roads, schools, kindergartens – essential elements for both citizens and the economy.

"Better roads aren't just for comfort. They determine the efficiency of local businesses, the transport of goods and access to markets," highlighted Doina Nistor.

Besides investments in infrastructure, substantial funds will also reach entrepreneurs, with the budget allocated to the Entrepreneurship Development Agency (ODA) supplemented by 200 million lei, in order to expand grant programmes and the credit guarantee mechanism, as well as for the 373 investment credit programme.

"We aim to support at least 700 entrepreneurs by the end of the year. Interest is very high and applications continue to come in," Nistor mentioned.

State aid for strategic investments and the local industry

Also within this plan, the state aid mechanism for medium and large investments has been expanded. The targeted projects include strategic industries, such as construction materials, the pharmaceutical industry, textiles, robotics, engineering, and agri-processing.

"We support concrete projects, such as opening new factories and production lines. Initially, we planned to fund 10 projects, but high demand led us to double the budget," explained the minister.

For young people, the startup programme has been supplemented with 20 million lei, encouraging initiatives in the IT field – a sector considered essential for the future economic development of Moldova.

Key goal: maximum absorption capacity of EU funds

Asked about the risks regarding the capacity of funds’ absorption, Doina Nistor acknowledged that this was a major, but manageable challenge.

"Our main task by the end of 2027 is to efficiently absorb the 1.9 billion euros. We have learned from the experiences of other European countries and are in the process of strengthening our administrative capacity," stated the official.

The minister emphasized that the growth plan doesn't mean only invested money, but also a qualitative leap in the country's economic development: "We are transitioning from a low-cost economy to one based on added value and innovation. This plan is our chance to fundamentally change the structure of the Moldovan economy."

According to the cited source, in conclusion, the growth plan funded by the European Union represents one of the most important economic initiatives for Moldova in recent decades. With a clear vision, well-established priorities, and significant resources, the country now has a real opportunity to turn from an emerging economy into a competitive European economy.