Romania’s industry shrinks by 3.3% y/y in January-May

Romania’s industrial output further contracted by 3.3% y/y in January-May, and by 4.5% y/y for the core manufacturing segment, compared to the same period of 2025, according to data from the statistics office INS. The annual decline steepened from 1.9% y/y in Q1 to 5.2% y/y in April-May, with a similar gradual deterioration in manufacturing.

The country’s industrial sector has lost ground significantly over the past five years, impacted by the rising cost of energy and labour. The labour- and energy-intensive industries have particularly lost ground: metallurgy and chemistry were impacted by the rising cost of energy, contracting by around one-third compared to 2021, while the country’s light industry contracted even more under the competition with lower-income countries.