Romania's economy contracts 1.2% in Q1 2026, entering recession

The National Institute of Statistics reported that Romania's gross domestic product fell 1.2% in the first quarter of 2026, versus the same period in 2025, and 1.1% on a seasonally adjusted basis. The contraction was broad‑based: industry contributed –0.2%, information and communications –0.3%, trade and transport –0.8%, public administration, education and health –0.2%, professional services –0.3% and real estate –0.1%. Household consumption was the largest drag at –1.2%, and net exports also turned negative. Construction posted a modest +0.4% contribution and cultural‑recreational services added +0.3%; fixed capital formation grew 4.7%, boosting GDP by 0.9%.

Despite the downturn, the Romanian leu remained stable against the euro. The National Bank of Romania kept its reference rate at 6.5% and short‑term ROBOR rates unchanged around 5.84% (3‑month), 5.92% (6‑month) and 5.98% (12‑month). The government issued 934 million lei of July‑2024 bonds at an average 6.25% yield, which were oversubscribed. Currency markets showed only modest movements in the euro, dollar, pound and gold prices.