Expert-Grup

How Much and How Do State-Owned Companies Still Matter in Moldova's Economy?

Economic growth policiesPublic financeMonday, 9 December 20242561 views
Project:
Technical assistance to the SOEs’ governance reform

Automatically translated summary. The full text is available in Romanian.

State-owned companies remain important owners, operators and employers in Moldova's strategic sectors, from gas and electricity networks to railways and roads. An analysis by the Independent Think Tank “Expert-Grup” quantifies how the state's contribution to value creation has evolved, how many companies it still owns and where they remain significant.

The structure of Moldova's economy by ownership has shifted markedly over 20 years. The share of local private capital in GDP rose from 50.2% in 2005 to 62.8% in 2022. Foreign and mixed capital grew from 13.6% in 2005 to 23.3% in 2019, then fell to 19.5% in 2022, reflecting the Covid-19 pandemic and the war in Ukraine.

The state's share of GDP fell from 22% in 2005 to 16.3% in 2010 and 9.3% in 2019, but recent years show its role growing again. The analysis cites three factors: slower growth in sectors where the state is most exposed, such as energy, utilities and railways; poor, unsystematic management marked by clientelism, corruption and inefficiency; and few successful privatisations. Privatising or concessioning assets such as Chișinău International Airport and Air Moldova raised questions of legality and transparency.

View the original in Romanian