GDP shrinks by 0.2% in the second quarter
The economy continues to grapple with logistics challenges which are hindering economic activity.
In the second quarter of 2026, South Africa's economy experienced a contraction of 0.2%, according to the latest data released by Statistics South Africa (StatSA). This marked a decline from the 0.4% growth witnessed in the first quarter of the same year.
The decrease in GDP was primarily driven by challenges in logistics, which were impacting economic activity across the nation. Several sectors, including trade, catering and accommodation, manufacturing, and mining, contributed to the contraction. Conversely, finance, real estate and business services, transport, storage and communication, government services, and personal services industries registered growth.
Mining and manufacturing sectors, in particular, faced significant hurdles, bearing the brunt of structural constraints within the economy. Dr Bokang Vumukani-Lepolesa, Chief Director of National Accounts at Stats SA, stated that three out of ten industries on the production side of the economy weakened during this period. Mining experienced a decline of 3%, primarily due to reduced production of platinum group metals, manganese ore, gold, and iron ore.
Additionally, trade saw a 1.9% decrease, attributed to weaker performance in wholesale trade, motor trade, and food and beverages.
Written by urgent.news from SABC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
