Pretoria: South Africa's Gross Domestic Product (GDP) has contracted by approximately 0.2% in the second quarter of 2026, following the 0.4% growth recorded in the first quarter of the year.
According to South African Government News Agency, figures released by Statistics South Africa (Stats SA) on Tuesday indicate that the trade, catering, and accommodation industry saw a decrease of 1.9%, contributing a negative 0.2 percentage points to the GDP. The decline was attributed to reduced economic activities in wholesale trade, motor trade, and food and beverages sectors. The manufacturing industry also faced a downturn, decreasing by 1.8% and contributing another negative 0.2 percentage points. Negative growth was reported in seven out of ten manufacturing divisions, with significant declines in food and beverages, furniture and 'other' manufacturing, and basic iron and steel sectors.
The mining and quarrying industry experienced a 3.0% decline, leading to a negative contribution of 0.1 percentage points. The main detractors in this sector were platinum group metals, manganese ore, gold, and iron ore.
Conversely, some industries recorded marginal gains. Finance, real estate, and the business services industry grew by 0.3%, contributing 0.1 percentage points. The transport, storage, and communication industry increased by 0.9%, also contributing 0.1 percentage points due to heightened economic activity in land transport. General government services rose by 1.0%, mainly due to increased compensation in extra-budgetary, higher education institutions, and provincial government sectors. The personal services industry grew by 0.6%, owing to increased economic activities in community services and other producers.
Stats SA also reported that household final consumption expenditure (HFCE) grew marginally by 0.4%, contributing 0.3 percentage points to the total negative growth. Positive contributors to HFCE included expenditures on food and non-alcoholic beverages, 'other' categories, recreation and culture, and health. However, negative contributions stemmed from expenditures on housing, water, electricity, gas, and other fuels, as well as transport, communication, and clothing and footwear.
