FX.co ★ Romania Q1 GDP Growth Falls to 2020 Lows

Romania’s economy contracted by 1.2% year-on-year in the first quarter of 2026, according to second estimates, a smaller decline than the initially reported 1.7% drop and a reversal from the 0.2% growth recorded in the previous quarter. This was the first economic contraction since the fourth quarter of 2020 and was mainly driven by decreases in government spending (-0.6%) and household consumption (-1.7%).

In contrast, investment and external demand supported growth. Gross fixed capital formation rose by 4.7%, while net external demand improved as exports increased by 1.9% and imports by 1.2%.

From a production perspective, output declined in several sectors, including 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%). The strongest gains were recorded in construction, which expanded by 7.9%, and in culture and recreation activities, which surged by 11.6%.

On a seasonally adjusted quarter-on-quarter basis, GDP was unchanged, an upward revision from the initially estimated 0.2% decline, following a 1.9% drop in the previous quarter.