Romania's Gross Domestic Product (GDP) remained unchanged in the second quarter of 2026 compared to the first quarter, while it fell by 0.4% year-on-year, according to preliminary data from the National Institute of Statistics (INS). The seasonally adjusted GDP also decreased by 2% compared to the same period in 2025. In the first half of 2026, GDP declined by 0.8% year-on-year on a gross basis and by 1.6% on a seasonally adjusted basis.
Key Details
In a related report, Romania’s industrial production index contracted by 4.6% year-on-year in Q2 2026, marking the steepest decline since the lockdown in 2020. Seasonally adjusted, industrial output decreased by 0.4% quarter-on-quarter. The core manufacturing sector saw an even sharper decline of 5.3% year-on-year, despite a slight 0.7% increase quarter-on-quarter. Other sectors, including utilities and mining, also reported negative growth rates of 0.5% and 1.5% year-on-year, respectively.
Background
The European Commission's spring forecast had predicted a modest economic growth of just 0.1% for Romania in 2026, a figure that the Bucharest government has incorporated into its projections. The industrial output data indicates that Romania's industry may face its fourth consecutive year of decline, despite some improvement in management expectations noted in July.
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The decline in industrial output could negatively affect sectors such as manufacturing and utilities, potentially leading to reduced economic activity and lower investor confidence. Investors will watch for further economic indicators and the upcoming European Commission review scheduled for later this year.
Based on reporting by: business-review.eu, romania-insider.com