BNR: Economic activity in Romania would likely record a more modest recovery in 2026 Q2 and Q3

Romania's economic activity is expected to recover modestly in Q2 and Q3 of 2026, with a decrease in aggregate demand deficit. The economy experienced a standstill in Q1 2026, following a decline in late 2025, primarily due to reduced household consumption and inventory changes. Gross fixed capital formation slowed, and net exports' positive impact diminished. Inflation rates showed a slight decrease, but core inflation rose due to higher fuel costs and exchange rate dynamics. The labor market showed mixed signals, with a slight decrease in unemployment but declining wage growth. Geopolitical tensions and domestic policies may further influence economic conditions.