Industrial output on the decline

Romania's economy is showing signs of fatigue, and this is also impacting industrial output, which recorded the second-largest decline in the European Union.

Sorin Iordan, 18.09.2026, 13:50

Romania’s industrial production recorded the second-largest decline in the European Union in 2026, after Bulgaria, according to the European statistical office. In July, Romania’s industrial output was 6.3% lower than in the same month of 2025, while the country south of the Danube saw a 6.8% drop. For Romania, Eurostat data show year-on-year declines of 1.9% in February, 2.5% in March, 3.3% in April, 5.4% in May, and 5.5% in June. Romania is followed by Belgium, with a contraction of 5.6%. At the opposite end of the spectrum is the Netherlands, with an 8.2% increase in industrial production over the year, followed by Croatia (+7%) and Lithuania (+6.5%). Denmark, Finland, Hungary, and Poland also recorded growth exceeding 4%. However, Germany’s industrial sector contracted by 2.2%, and France’s by 0.7%. Italy maintained the same level as in July 2025, while Spain recorded a 2.4% increase.

Overall, industrial production across the European bloc rose by 0.3%. Turning to the situation in Romania, the National Institute of Statistics (INS) reports that, in the first seven months of the year, industrial production fell by 3.7% (unadjusted series) and 3.8% (series adjusted for working days and seasonality) compared to the same period of the previous year. According to the data, this decline was driven by a 4.8% contraction in the manufacturing sector and a 1% drop in the mining and quarrying sector. Meanwhile, the production and supply of electricity, thermal energy, gas, hot water, and air conditioning increased by 2.3%. The INS also notes that, in July, industrial production rose by 0.7% compared to the previous month, driven by gains in the mining and quarrying sector and in the production and supply of electricity, thermal energy, gas, hot water, and air conditioning.

Economist Adrian Negrescu believes that, although Romania has not entered a technical recession, the economy has seen no growth for a year, a situation that has also impacted industrial output. He estimates that projected energy price hikes this autumn risk prolonging the economic stagnation until the second half of 2027. The only piece of good news, Negrescu added, is the remarkable resilience shown by the Romanian business sector in the face of unpredictable taxation, high inflation, declining sales, and intensifying financial gridlock. As a result of these developments, Romania dropped 12 places in the 2026 Global Competitiveness Ranking, compiled annually by the IMD Center, falling to 61^st place, whereas Poland, for instance, climbed 11 spots to reach 41^st place. Our country was also overtaken by Croatia, Turkey, and Bulgaria, as well as by states such as Kenya, Colombia, and Peru. Croatia ranks 53^rd, Kenya 55^th, Bulgaria 56^th, Turkey 57^th, Colombia 59^th, and Peru 60^th. (LS)