Despite strong annual growth, these indicators still reflect a short-term recovery cycle rather than sustained medium-term growth. In absolute terms, industrial production in the first quarter was only 1.8% above the 2021 average.
Moldova’s industry has struggled to generate sustainable growth in recent years, even though labor costs remain lower than in European Union member countries.
Labor shortages caused by large-scale migration of Moldovan workers to EU countries and instability related to the country’s market position have constrained industrial expansion by foreign investors.
Investors also cite energy instability, exacerbated by the Middle East crisis and the war in neighboring Ukraine, as one of the main obstacles to large-scale investment in manufacturing.
Net foreign direct investment (FDI) fell to 1.8% of GDP in 2025 from around 2% in 2023-2024, continuing the gradual decline from a peak of 3.8% of GDP recorded in 2022 when the war in Ukraine ended the positive trend. In addition, only a small portion of FDI was invested in industrial assets, as the banking, retail and real estate sectors dominated.
Excessive concentration on food products
The country’s industrial sector remains heavily concentrated on food and beverage production, which accounts for about one-third of total industrial output, contributing to increased volatility related to agricultural conditions and trade flows.
Food production grew 13.3% year-over-year in the first quarter, following a 40.4% increase in the fourth quarter of 2025. However, seasonally adjusted output in this segment remained 6.8% below the 2021 average in the first quarter. Even with the sharp increase in the previous quarter, production was still 6.7% below the 2021 figure, underscoring the importance of the base effect after a deep decline a year earlier.
Beverage production fell 14.7% year-on-year in the first quarter, although output remained 3.4% above the 2021 average on a seasonally adjusted basis.
Among other key industries, metal fabrication was the best performing. Output in this segment grew 46% year-on-year in the first quarter and 69% above the 2021 average.
Other important sectors include the production of non-metallic minerals such as cement, glass and building materials, and the production of automotive parts.
