Experts of Babes Bolyai University in Cluj-Napoca, compiling the Romanian Economic Monitor (RoEM), forecasted economic contraction of 0.5% this year amid political instability, a sharp revision from the 0.2% growth projected after the chronicisation of the  Middle East war and a more optimistic 0.8% growth set at the beginning of the year. The economy will return to growth with a robust 2.2% advance in 2027, driven by the positive effects of fiscal consolidation and lower inflation, according to the RoEM-UBB forecast. The main element seen as dragging down the economic growth this year, as well as restoring growth in 2027, is private consumption.