site.btaRomania Slips into Technical Recession

Romania has entered a technical recession, local media reported, citing data from the National Institute of Statistics (NIS). In the fourth quarter of 2025, the gross domestic product was 1.9% lower in real terms compared to the third quarter of 2025. This is the second consecutive quarter of decline, according to NIS.

“We began moving from a model based on deficit and consumption, seemingly a generator of prosperity but actually destructive, to a model based on investment, productivity, exports, and budgetary discipline. The temporary technical recession is part of the anticipated and inevitable cost of this transition, which will ultimately lead to a solid economy, healthy growth, and real prosperity, based on what we produce rather than increasingly large and expensive borrowing,” Prime Minister Ilie Bolojan posted on Facebook.

Local media recall that there was also a technical recession in 2024, when the government was led by Social Democratic Party leader Marcel Ciolacu.

A technical recession is a situation in which GDP registers a decline in real terms for two consecutive quarters compared to the immediately preceding periods. Essentially, it is a statistical diagnosis that officially confirms that the economy has stopped growing and has begun to contract, G4 Media news website said.

Domestic and international economists warned of such a scenario as early as last fall, when the country’s economy showed signs of slowing down.