Romania’s GDP falls 1.1% year-on-year in Q1 2026
Romanian GDP stagnated in the first quarter of 2026 compared with the last three months of the previous year and fell by 1.1% compared with the same period in 2025, according to provisional data published on Friday, June 5, by the National Institute of Statistics (INS).
According to INS, the seasonally adjusted Gross Domestic Product was estimated at RON 497,820 billion at current prices in Q1 2026. In real terms, meaning after removing the effect of inflation, the economy fell by 1.1% compared with Q1 2025. Compared with Q4 2025, GDP remained unchanged.
On the unadjusted series, estimated GDP for Q1 2026 was RON 403,915.4 billion at current prices, down 1.2% compared with the same period last year. INS stated that the seasonally adjusted series was recalculated following a revision of estimates for Q1 2026, with differences compared to the version published on May 13, 2026.
Statistical data showed that the construction sector made the most significant positive contribution to GDP growth. Construction contributed +0.4% to economic growth, accounting for a 5.3% share in GDP formation and recording a 7.9% increase in activity volume.
Significant increases were also recorded in entertainment, cultural, and recreational activities, household appliance repairs, and other services. These activities had a positive contribution of +0.3% to GDP, with a 2.8% share in the economy and a 11.6% increase in activity volume.
INS also showed that investment supported the economy in the first quarter. Gross fixed capital formation, an indicator reflecting investment in the economy, rose by 4.7% and contributed +0.9% to GDP change.
On the other hand, the largest negative contributions to economic performance came from trade, transport, and hospitality. Wholesale and retail trade, repair of motor vehicles and motorcycles, transport and storage, hotels and restaurants had a negative contribution of -0.8% to GDP change. These activities account for 22.5% of GDP and recorded a 3.1% decline in activity volume.
Industry, one of the most important sectors of the Romanian economy, also negatively affected GDP evolution. The industrial sector, which has a 15.8% share in the economy, recorded a 1.2% decline in activity and dragged GDP down by -0.2%.
Declines were also recorded in the IT&C sector. Information and communications, which represent 8.1% of GDP, had a negative contribution of -0.3%, amid a 4.1% decline in activity.
Real estate transactions also had a negative contribution, dragging GDP down by -0.1%. The sector accounts for 7.5% of the economy and recorded a 1.9% decline in activity.
Professional, scientific, and technical activities, together with administrative services and support services, also contributed negatively (-0.3% to GDP change). The sector accounts for 6.1% of the economy and recorded a 3.9% decline in activity.
Declines were also recorded in public administration and social services. Public administration and defence, social security, education, healthcare, and social assistance had a negative contribution of -0.2% to GDP evolution, with a 14.6% share in the economy and a 1.3% decline in activity.
Agriculture, financial intermediation, and insurance did not contribute to GDP growth in Q1 2026. Net taxes on products also did not contribute to economic growth, although they account for 11.6% of GDP formation, and their volume fell by 0.6%.
One of the most important negative signals in INS data comes from household consumption, the main driver of Romania’s economic growth in recent years. Household final consumption expenditure fell by 1.8%, contributing -1.2% to GDP change. In practice, amid high inflation and high interest rates, Romanians reduced spending, and this was directly reflected in economic activity.
Public administration consumption also declined. Individual final consumption expenditure of public administration fell by 1.2%, contributing -0.1% to GDP evolution.
(Photo source: Andrii Yalanskyi|Dreamstime.com)
