growth in 2025 and 2026, underperforming most of macroeconomic risk. Budget discussions for 2026 have Europe amid persistent inflation, fiscal consolidation, and elevated political uncertainty. GDP growth is estimated at around 1.4% in 2025, with a gradual to around 6% of GDP by end-2026, in line with EU commitments. In this environment, the National Bank of recovery to approximately 1.6% in 2026, reflecting Romania is expected to maintain a restrictive stance, impact of restrictive fiscal measures, yet these were highly necessary. Romania enters 2026 amid tighteningkeeping the policy rate unchanged at 6.5% until at least budget conditions, which are expected to weigh on market are positive - the rate, at the beginning of 2026 higher than the European average, despite early signs yead ot panedwos sdq og Aq 'puan busseaioap e uo s! of stabilisation. CPl stagnated at 9.8% YoY in November levels in 2025. This reflects the confidence the & December 2025, but price pressures remain broad- based. Services inflation continues to be the main driver, followed by non-food goods and food inflation. For full-year 2025, inflation is estimated to have averaged 7.3%, reflecting the pass-through of tax resilient, with unemployment low by historical sanseaw joddns siaua fo leowal aur pue saseaoustandards, although real wage growth continues to be 2026 as base effects take hold, resulting in an annual