Romania’s retail sales posted a 2.5% y/y advance in May, resulting in an average 1.4% y/y advance in April-May – a period that filters out the different Eastern holiday periods in 2024 and 2025. The retail sales thus decelerated after posting 3.5% y/y growth in Q1 and an impressive 8.6% advance in 2024 when the government particularly pushed out the public pensions and wages.
For the two-month period, the sales of non-food goods increased by 3.4% y/y – versus a small 0.1% negative dynamic of the food goods sales. The sales of services contracted by 0.5% y/y.
From a broader perspective, the seasonal and workday-adjusted retail sales in Romania have stagnated for the past nine consecutive months, with a slight downward trend observed from March to April this year. The political turmoil has played a key role in households’ more austere spending.
The pattern is likely to remain in place in June and the months to follow as households take a more cautious position and the government implements measures with a direct impact on their purchasing power: a higher VAT rate and excise duties as of August and no public wage and pension hikes in 2026.
iulian@romania-insider.com
(Photo source: Designer491/Dreamstime.com)
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