Romania economy enters recession as trade and industry decline

Romanian Senator Petrișor Peiu, representing the AUR party, has criticized the economic policies of the Ilie Bolojan government, citing data that indicates the national economy entered a recession in the second quarter of 2026. According to Peiu’s analysis, the GDP decreased by 1.9% compared to the same period in the previous year.

The analysis highlights a significant decline in several key sectors. Retail and wholesale trade fell from 22.3% of GDP in Q2 2025 to 19.3% in Q2 2026. Industry, agriculture, and banking services also saw decreases in their share of the GDP. Additionally, information and communications, as well as professional activities, recorded lower proportions.

In contrast, the construction sector and real estate transactions showed growth. Construction rose from 6.6% to 8.8% of GDP, while real estate transactions increased from 7.4% to 8.9%. Consumption taxes, particularly VAT, also saw an increase in their share of the GDP, rising from 9.6% to 10.9%. Peiu argued that the government has stimulated construction and taxes while harming trade, industry, and agriculture.