3:40 14 May 2026
Romania falling into recession, but Polish investors believe in country
Romania is facing a sharp economic slowdown after years of being one of the EU’s fastest-growing economies. GDP fell 1.7% year over year in the first quarter of 2026, while inflation climbed into double digits as the government introduced austerity measures to reduce budget and trade deficits. Tax increases, spending cuts, and frozen public-sector wages have weakened consumer and business sentiment, contributing to political instability and the collapse of the government led by Ilie Bolojan.
Despite the downturn, analysts say Romania is not experiencing a full-scale recession. Unemployment remains stable, the stock market is rising, and foreign investment continues to flow. According to recent data, foreign direct investment reached EUR 7.7 bln over 12 months through February, up 25% year over year. Polish pharmaceutical company Polpharma recently announced the acquisition of Romanian drugmaker Biofarm for around EUR 250 mln, underlining Romania’s continued appeal to international investors despite economic and political turbulence.
(pb.pl)
