South African rand slips ahead of GDP data expected to show a decline
JOHANNESBURG: The South African rand weakened in early trade on Tuesday as investors awaited second-quarter gross domestic product (GDP) data, which is expected to show the economy contracted. At 0625 GMT, the rand traded at 16.0375 against the dollar , about 0.2% weaker than its close. Statistics South Africa is due to release GDP figures at 0900 GMT, offering fresh clues on the health of…
The South African rand experienced a dip in early trading on Tuesday as investors awaited the release of second-quarter gross domestic product (GDP) data, which is anticipated to indicate a decline in the economy. At 0625 GMT, the currency was valued at 16.0375 against the US dollar, marking a 0.2% decrease from its previous close.
The official statistics are set to be unveiled by Statistics South Africa at 0900 GMT, providing additional insight into the condition of Africa's most industrialized economy. According to Reuters' economists, the country's GDP is projected to have contracted by 0.1% quarter-on-quarter, following a growth of 0.5% in the first quarter of 2026.
On an annual basis, growth is anticipated to be 1.2%. "Such a result would mark the end of six consecutive quarters of growth, but the headline may understate the underlying momentum," noted ETM Analytics in a statement. Nedbank economists estimate a contraction of 0.2%, primarily due to weakness in mining, manufacturing, electricity, gas and water, as well as domestic trade.
Agriculture and certain segments of the services sector are expected to continue contributing to the economic activity. Additionally, South Africa's benchmark 2035 government bond weakened early in the trading session, with its yield rising by 4 basis points to 8.615%.
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