Romania's economy seen slowing, recovery expected from 2026


  • World
  • Tuesday, 18 Nov 2025

BUCHAREST, Nov. 17 (Xinhua) -- The European Commission on Monday revised down its forecast for Romania's economic growth for this year to 0.7 percent from 1.4 percent in its spring outlook.

Growth is expected to pick up modestly to 1.1 percent in 2026 and above 2 percent in 2027 as inflation eases and monetary policy loosens.

The Commission said Romania's deficit is set to remain high at 8.4 percent of gross domestic product (GDP) in 2025, before easing to 6.2 percent in 2026.

The labour market is projected to cool, with unemployment rising slightly to above 6 percent in 2025 before gradually declining to 5.6 percent by 2027.

Inflation, which rebounded after the removal of household electricity price caps and VAT increases, is forecast to average 6.7 percent in 2025 and fall below 6 percent in 2026.

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