Romania’s economy registers small 0.3% growth, fueling fears of recession

Romania’s economy grew by only 0.3% gross in the first half of 2025, and by 1.4% in seasonally adjusted series, according to data published Thursday, August 14, by the National Institute of Statistics (INS).

In the second quarter of 2025, compared to the previous quarter, the Gross Domestic Product increased by 1.2%. Compared to the same quarter of 2024, the GDP rose by 2.1%.

The numbers posted indicate a stagnation of the economy, stoking fears of a recession, while the government increased taxation to address a wide deficit.

“We must be prepared at any moment for a recession, having today’s up-to-date economic data, which indicates that we must be prepared at any moment for a recession and must anticipate this,” Romanian finance minister Alexandru Nazare said during a press conference on Wednesday, August 13.

Romania’s central bank, BNR, has sharply revised its inflation forecast for 2025, raising the year-end estimate from 4.6% to 8.8%, with the possibility of exceeding 9%. Governor Mugur Isărescu warned that inflation will peak in September, potentially reaching 9.6% or 9.7%, before gradually easing.

Isărescu also said that Romania can avoid a recession through an increased absorption of European funds.

This June, the World Bank estimated that Romania’s economy would grow by 1.3% in 2025 and that it would face a similar low rate in 2026.

(Photo source: Antonyesse/Dreamstime.com)