World Bank slashes Romania’s 2025 growth forecast to 1.3%, lowest in region

In response to challenges, the World Bank report emphasizes the critical need for Romania to accelerate structural reforms within its economy

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The World Bank has significantly lowered its forecast for Romania’s economic growth in 2025, projecting a rate of just 1.3%. This revised figure represents a notable downgrade and positions Romania with the lowest anticipated growth rate among the countries in the Europe and Central Asia (ECA) region.

This updated projection is a substantial cut from the World Bank’s previous estimates and falls considerably short of the Romanian government’s more optimistic growth targets. The international financial institution attributes the dimmer outlook to a combination of factors, including heightened global uncertainty, rising trade barriers, weaker demand from key trading partners, and persistent domestic inflationary pressures.

Looking slightly ahead, the World Bank projects a modest acceleration in Romania’s economic growth to 1.9% in 2026. However, the lowered forecast for the upcoming year underscores the significant hurdles Romania must overcome in maintaining a robust economic trajectory amidst a complex and uncertain global economic climate.