GDP shrinks by 0.2% in the second quarter
The local economy contracted by 0.2% in the second quarter of this year.
Statistics South Africa’s (StatSA) newly released data shows that the Gross Domestic Product (GDP) decreased by 0.2% in the second quarter.
This followed an increase of 0.4% in the first quarter of 2026.
The economy is continuing to grapple with logistics challenges which are hindering economic activity.
The sectors that contributed to the second quarter GDP decrease were trade, catering and accommodation, manufacturing and the mining industry.
Those that contributed positively were finance, real estate and business services, transport, storage and communication, government services and personal services industries.
Mining and manufacturing continue to bear the brunt of the structural constraints on the economy.
Stats SA’s Chief Director of National Accounts, Dr Bokang Vumukani-Lepolesa, says, “The South African Gross Domestic Product decreased by 0.2% in the second quarter of 2026 compared with the first quarter. Three over 10 industries on the production side of the economy were weaker; these were mining, trade and manufacturing. Mining decreased by 3%, dragged lower by declines in the production of platinum group metals, manganese ore, gold and iron ore. Trade was down by 1.9%; this was due to weaker wholesale trade, motor trade, and food and beverages.”
— Statistics South Africa (Stats SA) (@StatsSA) September 8, 2026