Romania’s economy drops 1.2% year-on-year in Q1 2026

Romania’s economy stagnated in the first three months of 2026 compared with the fourth quarter of 2025, according to the National Institute of Statistics . However, it declined 1.2% in the unadjusted series and 1.1% in the seasonally adjusted series compared with the same quarter of 2025. In value terms, seasonally adjusted GDP estimated for the first quarter of 2026 amounted to RON 499 billion at current prices in nominal terms and, in real terms, was down 1.1% compared with the first quarter of 2025. By resource categories, agriculture, forestry, and fishing did not contribute to GDP growth (0.0%), and the volume of activity was unchanged from the previous estimate (100.8%). Industry recorded the same contribution to the change in GDP (-0.2%) in both estimates, while the volume of activity was revised down by 0.1 %s from the previous estimate (from 98.8% to 98.7%). Construction recorded the same contribution to GDP growth (+0.4%) in both estimates, and the volume of activity was unchanged from the previous estimate (107.9%). Wholesale and retail trade, transportation and storage, accommodation and food service activities slightly revised their contribution to GDP growth, from -0.8% to -0.7% between the two estimates, while the volume of activity was revised by 0.1 %s (from 96.9% to 96.8%). IT recorded the same contribution to the change in GDP (-0.3%), and the volume of activity was unchanged from the previous estimate (95.9%). From the expenditure side of GDP, significant revisions in the contribution to GDP growth between the two estimates were recorded for individual final consumption expenditure of general government, from -0.1% to +0.4%, following a 6.2% increase in its volume (from 98.8% to 105.0%), and collective final consumption expenditure of general government, from 0.0% to +1.4%, following a 13.3% increase in its volume (from 99.6% to 112.9%). Investment (gross fixed capital formation) was revised down from +0.9% to +0.4%, following a 2.5% decline in its volume (from 104.7% to 102.2%). Final consumption expenditure of households recorded the same contribution to GDP growth (-1.2%) in both estimates, and its volume was unchanged from the previous estimate (98.2%). Romania is currently tackling a ballooning budget deficit that narrowed by 44% y/y to RON 35.9 billion (EUR 6.9 billion) in January-May, as the country reduced payroll in the budgetary sector and current expenditures from EU grants. [email protected] (Photo source: Antonyesse|Dreamstime.com )