ING Bank has projected that Romania's economy will shrink in 2026, marking a contraction before returning to growth in 2027, according to a report by Profit.ro.
The bank's latest forecast suggests the recovery next year will be modest, driven largely by sustained investment activity that is expected to partially compensate for the current economic weakness.
A key pillar of the outlook is the successful absorption of funds from the National Recovery and Resilience Plan (PNRR).
ING analysts indicate there is a high probability that Romania will fully utilize these allocated funds, providing a critical fiscal buffer during the downturn.
This spending is viewed as a primary stabilizer for the economy as it navigates the contraction phase.
On the monetary front, the bank anticipates that interest rates will begin to decline starting in 2027.