Romania GDP Contracts for Second Consecutive Quarter

The National Institute of Statistics and Geography reported Friday that the national economy contracted for the second consecutive quarter in the three months ending June. Preliminary data shows that GDP declined 0.4 percent annually on an unadjusted basis during the second quarter.

This unadjusted figure represents a smaller drop than the 1.5 percent decrease analysts had expected and an improvement over the 1.2 percent fall recorded in the March quarter. However, the seasonally adjusted GDP contraction deepened to 2.0 percent, compared to a 1.1 percent decline in the previous quarter. For the first half of 2026, GDP decreased by 0.8 percent on the unadjusted series and 1.6 percent on the seasonally adjusted series compared to the first half of 2025.

Economic pressure is further evidenced by a 6.6 percent year-on-year decrease in real average net wages during the second quarter, as 10.7 percent inflation offset nominal wage growth. This decline in purchasing power contributed to a 5.4 percent year-on-year contraction in retail sales volume. The data indicates a continuing trend of economic shrinkage for the country, despite the unadjusted GDP decline occurring at a slower pace than anticipated.