Romania’s economy to start recovering

Prime minister Ilie Bolojan promises that Romania’s economy see recovery this year as a result of the measures taken.

Daniela Budu, 22.01.2026, 14:00

Romania’s economy will go on a path to recovery in the coming months, said prime minister Ilie Bolojan in a post on social media. He added that there is solid basis for economic recovery this year, without further raising taxes. The savings made in the second half of last year led, he said, to a cut in the budget deficit by over 1% of GDP, below the target of 8.4%, without reducing investments. According to the Prime Minister, budget revenues have gone up, including as a result of raising some taxes, measures which he acknowledged to still have negative effects on the lives of ordinary Romanians.

However, 2026 will also see some positive developments, the Prime Minister believes, with the government intent on drafting a budget based on economic recovery and investments. Ilie Bolojan also expects the inflation rate to fall to 4 percent, from almost 10 percent at the moment. Over 15 billion euros will come from European funds, through the National Recovery and Resilience Plan and the cohesion policy. The money will be channelled into infrastructure, the economy and better public services, Ilie Bolojan says.

He also recalls that at the beginning of next month, the government is to take responsibility in Parliament for legislation to restrict public spending in the central and local administration. The state budget for 2026 will then be adopted, which will be built on realistic foundations, with a deficit target of just over 6%, the prime minister also said. In the meantime, government representatives have continued talks on the budget.

After a series of meetings and discussions with his ministers, Ilie Bolojan on Wednesday had talks with the governor of the National Bank, Mugur Isărescu. The spokesperson for the National Bank of Romania, Dan Suciu, said the budget deficit is the main challenge, because it generates inflation and a whole series of uncertainties regarding Romania’s economic development and economic stability.

Also on Wednesday, the Prime Minister attended a meeting of the working group coordinated by Deputy Prime Minister Tánczos Barna on the subject of income tax and the amounts from VAT that local authorities are to receive. Talks emphasuised the need to maintain the income tax fully as a source of funding for the local public administration and the need for balance in terms of gradually reducing the pressure on the state budget. The government’s objective is to build a balanced budget that will support the development of local communities, while continuing efforts aimed at fiscal-budgetary consolidation and the reduction of the budget deficit, said Tánczos Barna.

Forecasts for this year point to a GDP to the amount of about 2,045 billion lei (409 billion euros) and economic growth rate of approximately 1%. Prime Minister Ilie Bolojan aims for this year’s budget to be adopted in the second half of next month.