Romania's retail sales have contracted severely in the first quarter of 2026, falling 5.8% year-over-year—the sharpest decline since pandemic lockdowns—after a VAT rate hike in August 2025 eroded purchasing power. Consumer confidence collapsed in April to its lowest level since 2011, with households citing rising inflation, weak wage growth, and currency depreciation; food sales showed particular weakness, reflecting households cutting discretionary spending in response to financial strain.