Romania’s economy contracted by 0.2% year-on-year in the second quarter of 2026, a slightly smaller decline than initially estimated, after a 1.2% drop in the previous quarter. This was the second consecutive quarter of annual economic contraction, the first such sequence since Q4 2020.
On the demand side, household consumption fell by 3.1%, and government spending declined by 1.7%. In contrast, gross fixed capital formation surged by 19.9%. Net external demand also improved, with exports rising by 4.0% and imports increasing by 3.0%.
On the production side, output fell in mining and quarrying (-3.9%), wholesale and retail trade (-4.3%), information and communication (-2.5%), and public administration and defence (-2.0%). These declines were partly offset by robust growth in agriculture, forestry and fishing (6.1%), construction (15.4%), and cultural and recreational activities (12.8%).
On a seasonally adjusted quarter-on-quarter basis, GDP was flat, following a revised 0.1% decline in the previous quarter.
