Romania's economy advances 2.1pct in Q2 2025

Romania's Gross Domestic Product (GDP) increased by 2.1% in Q2 2025, y-o-y, seasonally adjusted, and by 1.4% in H1 2025 seasonally adjusted, according to the latest estimates of the National Institute of Statistics (INS).

"As a result of the revision of the unadjusted series by including the estimate of the Gross Domestic Product for the Q2 2025 in the quarterly series, the seasonally adjusted series was recalculated, with the volume indices being revised from the second provisional version of the Gross Domestic Product for Q1 2025, published in the press release no. 175 of July 10, 2025, as follows: the Q1 2024 results compared with Q4 2023 were revised from 99.8% to 99.9%; the results of Q2 2024, compared with he first quarter of 2024, were revised from 100.3% to 99.8%; the results of Q3 2024, compared withQ2 2024 were revised from 99.8% to 100.3%; the results Q 4 2024, compared with Q3 2024, have been revised from 100.5% to 100.4%; the results of the Q1 2025, as against Q4 2024, have been revised from 100.0% to 100.1%," the INS reports in a press release.

According to the Minister of Finance, Alexandru Nazare, Romania's economic growth is decelerating, and investments have fallen by 30% in the first five months, so we must be prepared at all times for a recession.

"It is a real risk and we must prepare ourselves even if we enter a recession to have solutions, to have measures to make the transition through the recession as easy as possible. We had to be prepared already, because we have an economic growth that has decelerated every year for four years. So it was not so difficult to anticipate that we would eventually head towards a recession, if we analyse the decrease in economic growth every year (...)," Nazare said at a news conference at the Government House.

The central bank recently reported that the new statistical data reconfirm economic stagnation in Q1 2025, after an increase of 0.5% in the previous three months, as well as a decrease in its annual growth to 0.3% from 0.5% in Q4 2024.

"Latest data and analyses indicate a modest growth of the economy in quarterly terms in Q2 2025, given heterogeneous developments in the components of aggregate demand and major sectors year-on-year," the central bank said in a press statement released after a meeting of the Board of Directors on monetary policy issues.