KEY POINTS
- South Africa’s GDP shrank 0.2% in Q2 2026.
- Manufacturing fell 1.8%, while mining dropped 3%.
- 2026 growth forecast cut to about 1.2%.
South Africa’s GDP contracted by 0.2% quarter-on-quarter in the second quarter of 2026, reversing the 0.4% growth recorded in the first quarter, according to Statistics South Africa (Stats SA).
The decline reflects mounting pressure on key productive sectors, particularly manufacturing, mining and trade, amid a challenging global economic environment and weaker domestic investment.
Manufacturing output fell by 1.8% during the quarter, reducing overall GDP growth by 0.2 percentage points. Seven of the sector’s 10 divisions recorded negative growth.
The biggest declines came from food and beverages; furniture and other manufacturing; as well as basic iron and steel, non-ferrous metal products, metal products and machinery.
Mining sector also records sharp decline
The mining and quarrying industry contracted by 3%, subtracting another 0.1 percentage point from overall GDP growth.
The weakest performances were recorded in platinum-group metals (PGMs), manganese ore, gold and iron-ore mining.
The mining decline is significant for South Africa, where the sector remains an important contributor to exports, industrial activity and employment. Lower output across several major mineral categories added to the pressure already being felt by the manufacturing industry.
The trade, catering and accommodation sector also recorded a 1.9% contraction, contributing -0.2 percentage points to GDP.
Stats SA attributed the decline to weaker activity in wholesale trade, motor trade, and food and beverage-related businesses.
The combined weakness in manufacturing, mining and trade more than offset growth recorded in several service-oriented parts of the economy.
