Romania’s economy contracted by 0.4% year-on-year in the second quarter of 2026, in line with preliminary estimates and following a 1.2% decline in the first quarter. This marked the second consecutive quarter of annual economic contraction, though the pace of decline eased notably compared with the previous period.
On the expenditure side, household consumption fell by 3.1%, while government spending declined by 0.8%. Net external demand also weighed on growth: exports increased by 1.4%, but imports rose at a faster pace, up 2.6%. In contrast, gross fixed capital formation surged by 16.5%, providing a strong positive contribution to overall activity.
From a production perspective, output dropped most sharply in mining and quarrying (-4.2%), wholesale and retail trade (-4.5%), information and communication (-2.8%), and public administration and defense (-2.0%). The largest gains were recorded in construction, which expanded by 15.3%, and in culture and recreation activities, up 11.8%.
On a seasonally adjusted quarter-on-quarter basis, GDP was flat, following a 0.1% contraction in the previous quarter.
