Romania’s economy shrank 1.2% year on year in Q1 2026 and was flat from Q4 2025, with seasonally adjusted GDP estimated at RON 499 billion.
Industry and IT dragged on growth, each keeping negative contributions, while household consumption also stayed weak with its volume at 98.2% of the year-earlier level.
Government spending was revised up sharply in the latest estimate, but that was offset by weaker investment, whose contribution was cut to 0.4% after a 2.5% drop in volume.
The weak quarter lands as Romania tries to rein in a swollen budget deficit, which narrowed 44% year on year to RON 35.9 billion in January-May.