Romania GDP Shrinks Less Than Expected in Q2

Romania’s economy contracted by 0.4% year-on-year in the second quarter of 2026, well below market expectations for a 1.5% decline and easing from a 1.2% downturn in the previous three-month period, according to preliminary estimates. The latest reading marked the second consecutive quarter of annual economic contraction, although the pace of decline moderated significantly from the previous quarter. On a seasonally adjusted quarterly basis, the country’s GDP remained unchanged, following a revised 0.1% decline in the preceding quarter.

The Romanian economy contracted 1.2% year-on-year in the first quarter of 2026, matching second estimates and reversing from a 0.2% expansion in the previous three-month period. This marked the first contraction since the fourth quarter of 2020, highlighting a sharp loss of momentum at the start of the year. Household spending declined 1.0%, while government spending (12.9%), gross fixed capital formation (2.2%), and net external demand contributed positively, as exports rose 1.3% and imports edged up 0.5%. On the production side, output fell mainly in mining and quarrying (-1.3%), wholesale and retail trade (-3.2%), information and communication (-4.1%), and professional, scientific and technical activities (-3.8%), while the strongest gains were recorded in construction (7.9%), and culture and recreation activities (11.5%). On a seasonally adjusted quarterly basis, GDP was unchanged after contracting 1.9% in the preceding period.

Romania’s economy declined 1.2% year-on-year in the first quarter of 2026, easing from a 1.7% fall in the initial estimate and down from 0.2% growth in the previous quarter, according to second estimates. This marked the first contraction since Q4 2020, driven by declines in government spending (-0.6%) and household consumption (-1.7%). However, growth was seen in gross fixed capital formation (4.7%) and net external demand, as exports rose 1.9% while imports grew 1.2%. On the production side, output fell in mining and quarrying (-1.2%), wholesale and retail trade (-3.1%), information and communication (-4.1%), real estate (-1.9%), professional and scientific activities (-3.9%), and public administration and defence (-1.3%), while the strongest gains were recorded in construction (7.9%) and culture and recreation activities (11.6%). On a seasonally adjusted quarterly basis, GDP was flat, revised from 0.2% fall in the preliminary data, following a 1.9% decline in the previous quarter.