World Bank cuts Romania's growth forecast for 2026

Business Forum

14 January, 2026 at 8:32 AM

The World Bank revised down Romania's 2026 growth forecast to 1.3%, compared to the 1.9% predicted in June 2025 and 2.6% estimated in January 2025.

The growth rate is expected to improve to 1.9% by 2027, though this remains below the 2.5% previously forecast.

Furthermore, Romania's economy grew by 0.8% last year, significantly below the 1.3% forecast in June and the 2.1% estimate from early 2025, according to the World Bank's latest Global Economic Prospects report published on Tuesday.

The bank noted that economic growth in Central Europe should improve to 2.6% in 2026-2027, supported by strong investments, particularly in Poland and Romania, thanks to increased EU funding.

However, the World Bank warned that fiscal challenges will persist, especially in Romania, where fiscal consolidation is expected to affect economic growth. The institution highlighted that whilst investments from EU funding will provide support, domestic fiscal pressures remain a concern.

Overall, the World Bank expects weak global economic growth of 2.6%, though it considers this a sign of resilience against trade tensions.

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