Romania's economy increased by more than 1% in 2025, and the public deficit remained below the 8.4%-of-GDP target, according to Eugen Rădulescu, adviser to central bank governor, cited by Ziarul Financiar. Most analysts estimate last year's economic growth stayed below 1% – an otherwise rather arbitrary benchmark with little fundamental importance.

The economy performed "better than expected" last year, Rădulescu concluded.

"At the same time, the inflation rate did not exceed 10% last year, and I think it did not end the year with more than approximately 9.5–9.6%, in any case, below 10%. Considering all the confusion we went through in 2025, I think this is a good sign," said Eugen Rădulescu on the ZFLive business show on January 12.

For 2026, Eugen Rădulescu anticipated a better year, with higher economic growth, a decrease in inflation, and interest rates. 

However, he warns that the growth rate will depend on the economy's capacity to conduct reforms, particularly in the public sector and at the level of state-owned enterprises. More specifically, on the government's capacity to streamline the activity of the public sector and state-owned enterprises.

iulian@romania-insider.com

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