South African Economy Contracts 0.2% in Second Quarter
South Africa: South Africa’s economy contracted by 0.2% on a seasonally adjusted quarter-on-quarter basis in the second quarter of 2026, ending six consecutive quarters of growth, according to Statistics South Africa. Mining output declined by 3.0%, manufacturing fell by 1.8% and trade contracted by 1.9%. Higher imports and lower investment also constrained economic activity during the quarter.
The economic slowdown followed the start of the Iran war in late February and subsequent increases in domestic fuel prices. Economists said higher fuel costs affected household demand, while the impact on manufacturing remained uncertain. Joe de Beer, head of economic statistics at Statistics South Africa, said: "The situation in the Middle East definitely reflected in these numbers. The question we don't yet know is how long this will persist, especially for manufacturing," he said. North-West University Business School economist Prof Raymond Parsons said: "The evidence points to an economy in which recovery has been interrupted and delayed, rather than definitively derailed."
Source: Reuters
