Romania’s economy contracted by 1.7% year-on-year in the first quarter of 2026, reversing a modest 0.2% expansion in the previous three-month period, according to preliminary estimates. The latest figure marked the country’s first annual economic contraction since the fourth quarter of 2020, highlighting a significant loss of momentum at the start of the year. On a seasonally adjusted quarterly basis, the country’s GDP fell by 0.2%, marking a second consecutive quarterly contraction, though the pace of decline eased from an upwardly revised 2% drop in the previous quarter.