Growth is expected to accelerate to 2.2 percent in 2027, supported by a projected peak in the absorption of European Union funds under the Recovery and Resilience Facility and an improvement in the trade balance. However, weak external demand remains a key downside risk, News.az reports, citing Xinhua.
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For 2025, the EBRD maintained its preliminary estimate that the country’s gross domestic product (GDP) would grow by 0.9 percent.
Economic expansion remained subdued this year, as stronger EU-funded investment and a recovery in commodity exports only partially offset weak private consumption. Real wages fell by 5 percent in the second half of the year, weighing on household spending.
Business confidence stayed fragile amid political turmoil in the first half of 2025 and fiscal consolidation measures introduced later in the year.
Romania’s fiscal deficit is estimated to have narrowed from 9.3 percent of GDP to around 8 percent in 2025 and is expected to decline further to 6.2 percent of GDP in 2026.
Meanwhile, higher Value-Added Tax and energy prices pushed annual inflation to 9.7 percent at the end of the year, the highest rate in the European Union.
The National Bank of Romania has maintained a restrictive monetary policy stance to curb persistent inflationary pressures.
