Romania GDP Shrinks Less Than Expected in Q2

Romania’s economy contracted by 0.2% year-on-year in the second quarter of 2026, slightly less than initially estimated, following a 1.2% decline in the previous quarter. This marked the second consecutive quarter of annual economic contraction since Q4 2020. Household spending declined by 3.1%, while government spending fell by 1.7%. Meanwhile, gross fixed capital formation climbed by 19.9%, while net external demand increased, with exports rising by 4.0% and imports by 3.0%. On the production side, output declined in mining and quarrying (-3.9%), wholesale and retail trade (-4.3%), information and communication (-2.5%), and public administration and defence (-2.0%). In contrast, the strongest gains were recorded in agriculture, forestry and fishing (6.1%), construction (15.4%), and cultural and recreational activities (12.8%). On a seasonally adjusted quarterly basis, GDP remained unchanged, following a revised 0.1% decline in the previous quarter.

Romania’s economy shrank by 0.4% year-on-year in the second quarter of 2026, confirming preliminary estimates and following a 1.2% contraction in the first quarter. The latest reading marked the second consecutive quarter of annual economic contraction, although the pace of decline moderated significantly from the previous quarter. Household spending declined 3.1%, while government spending shed 0.8%, and net external demand contributed negatively, as exports rose 1.4% while imports increased 2.6%. By contrast, gross fixed capital formation surged 16.5%. On the production side, output fell mainly in mining and quarrying (-4.2%), wholesale and retail trade (-4.5%), information and communication (-2.8%), and public administration and defense (-2.0%), while the strongest gains were recorded in construction (15.3%) and culture and recreation activities (11.8%). On a seasonally adjusted quarterly basis, the country’s GDP remained unchanged after a 0.1% contraction in the preceding quarter.

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.