Romania GDP Contracts for First Time Since 2020

The National Institute of Statistics and Geography reported that Romania's economy contracted by an unadjusted 1.2 percent annually in the first quarter of 2026. This marks the first economic contraction for the country since the fourth quarter of 2020. Seasonally adjusted GDP declined by 1.1 percent compared to the same quarter of the previous year, totaling an estimated RON 499 billion.

The downturn was primarily driven by a 1.2 percent drop in household final consumption, along with declines in wholesale and retail trade, transport, and information and communications. Conversely, the construction sector contributed positively to GDP at 0.4 percent, and general government consumption increased by 1.4 percent.

Despite the GDP shrinkage, other fiscal indicators showed improvement. Between January and May 2026, the national budget deficit narrowed by 44 percent year-on-year to RON 35.9 billion. Additionally, the trade deficit decreased by 6.2 percent to EUR 13.5 billion during the same five-month period, supported by a 2.4 percent increase in exports and a marginal 0.1 percent rise in imports.