Romania faces deepening economic crisis amid political deadlock

Romania’s economy is entering a precarious phase as cheap credit ends and growth stalls at 0.9% in 2024, with a fiscal deficit of 9.5% and imports outpacing exports. Analysts call for urgent reindustrialisation, private investment, energy‑storage projects and a capital market capable of turning bank deposits into productive capital, while also stressing the need to integrate artificial intelligence across sectors.

Politically, the country is paralyzed: the USR‑led “Rezist” bloc, PNL and PSD have failed to agree on a new prime minister, pushing parliament into a summer recess. Electricity tariffs have risen to 1.03‑1.48 lei/kWh, among the highest in the EU, and public debt has jumped from 54.8% of GDP in 2024 to 59.3% in 2025, with projections of over 63% by 2027 and a possible 90% in the next decade, according to a European Commission convergence report.