Key facts
- South Africa's economy contracted 0.2% in the second quarter of 2026.
- Economists polled by Reuters had forecast a 0.1% shrinkage.
- Year-on-year GDP growth was 0.9% in April-June, below the forecast 1.2%.
- The mining and quarrying industry grew 3.7%, contributing 0.2 percentage points to GDP.
- Manufacturing increased by 1.8%, contributing 0.2% to GDP.
- Trade, catering, and accommodation increased by 1.7%, contributing 0.2 percentage points.
South Africa's economy experienced a contraction of 0.2% in the second quarter of 2026, according to seasonally adjusted quarter-on-quarter data released by Statistics South Africa. This figure fell short of the 0.1% shrinkage anticipated by economists polled by Reuters. The first quarter of the year had seen a revised growth of 0.4%.
On an annual basis, the gross domestic product (GDP) for April-June grew by 0.9%, also underperforming the forecasted 1.2% growth.
However, a separate report from SAnews indicated that South Africa's real GDP improved by 0.8% in the second quarter of 2025, following a 0.1% increase in the first quarter. This report highlighted positive contributions from the mining and quarrying industry (up 3.7%), manufacturing (up 1.8%), and trade, catering, and accommodation (up 1.7%). Conversely, the transport, storage, and communication industry saw a decrease of 0.8%, and the construction industry declined by 0.3%.