Romania’s Economy Shrinks 0.7% in First Half as Household Consumption Falls and Investment Rises

Romania’s economy contracted in the first half of 2026, with weaker household spending offsetting a sharp rise in investment, according to provisional data from the National Institute of Statistics.

Gross domestic product fell 0.7% in real terms from the first half of 2025. Second-quarter GDP was 0.4% below the same quarter a year earlier, although seasonally and calendar-adjusted GDP remained unchanged from the first quarter of 2026.

GDP in the second quarter stood at 494.4 billion lei at current prices on the unadjusted series. For the first half, it reached 900.4 billion lei at current prices. On a seasonally adjusted basis, the economy was 1.6% below its level a year earlier, compared with the 0.7% decline on the unadjusted series.

Household final consumption fell 2.5% in real terms during the first half and made a negative contribution of 1.5 percentage points to the change in GDP. The component represents 61.2% of the economy. Second-quarter household consumption fell 1.9% from a year earlier, even as nominal spending reached 290.1 billion lei. The increase in nominal spending reflected higher prices rather than a rise in the volume of goods and services consumed.

Investment provided the strongest support. Gross fixed capital formation rose 10.9% in the first half and contributed 2.4 percentage points to GDP, the largest positive contribution among expenditure components. It rose 16.5% in the second quarter. Gross capital formation, including changes in inventories, increased 0.9% in the first half and 8.5% in the second quarter. Construction activity also expanded, rising 12.3% in the first six months.