Newsletter Issue 64 | March – April 2021

Adjusting to FDI trends in the context of the pandemic

Investment is central to growth and sustainable development. However, current conditions are challenging, with global FDI declining in recent years and the severe impact of the COVID-19 pandemic on investment flows and global value chains (GVCs). At the same time, changes in investment patterns and the transformation of value chains that have been accelerated by the pandemic also open up opportunities for the development of Moldova’s economy. Those include attracting nearshoring projects and benefiting from a diversification and regionalisation of value and supply chains. In such a situation, it is of critical importance that investment attraction measures are as effective as possible. Tapping this potential requires a coherent and targeted approach, focusing on value chains that offer the most promising potential in light of the transformation process and utilising synergies between investment attraction and cluster development measures.

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