South Africa’s Gross Domestic Product (GDP) has contracted by some 0.2% in the second quarter of 2026, following the 0.4% growth recorded in the first quarter of 2026.
This is according to the figures released by Statistics South Africa (Stats SA) on Tuesday.
“The trade, catering and accommodation industry decreased by 1.9%, contributing -0.2 of a percentage point. Decreased economic activities were reported for wholesale trade, motor trade, and food and beverages. The manufacturing industry decreased by 1.8%, contributing -0.2 of a percentage point. Seven of the ten manufacturing divisions reported negative growth rates.
“The largest negative contributions were reported for the food and beverages; furniture and ‘other’ manufacturing; and basic iron and steel, non-ferrous metal products, metal products and machinery divisions. The mining and quarrying industry decreased by 3.0%, contributing -0.1 of a percentage point. The largest negative contributors were platinum group metals, manganese ore, gold and iron ore,” Stats SA said in a statement.
Conversely, marginal gains were recorded in finance, real estate and the business services industry, which increased by some 0.3%, contributing 0.1 of a percentage point.
“The main contributors were financial intermediation, insurance and pension funding, and other business services. The transport, storage and communication industry increased by 0.9%, contributing 0.1 of a percentage point. Increased economic activity was reported for land transport.
“General government services increased by 1.0%, contributing 0.1 of a percentage point. This was mainly due to an increase in compensation of employees in extra-budgetary and higher education institutions, and provincial government.
“The personal services industry increased by 0.6%, contributing 0.1 of a percentage point. Increased economic activities were reported for community services and other producers,” the institution noted.
Stats SA highlighted that household final consumption expenditure (HFCE) grew marginally by 0.4%, “contributing 0.3 of a percentage point to the total negative growth”.
“The main positive contributors to the increase in HFCE were expenditures on food and non-alcoholic beverages [1.2% and contributing 0.2 of a percentage point]; ‘other’ [0.6% and contributing 0.1 of a percentage point]; recreation and culture [0.8% and contributing 0.1 of a percentage point] and health [0.7% and contributing 0.1 of a percentage point].
“The negative contributors were expenditures on housing, water, electricity, gas and other fuels; transport; communication, and clothing and footwear,” Stats SA said. – SAnews.gov.za
