South Africa Economy Contracts 0.2% in Q2

South Africa's economy contracted by 0.2% in the second quarter of 2026, marking the first decline in six quarters and signaling a setback for Africa's largest economy. The downturn, revealed by Statistics South Africa (Stats SA) on Tuesday, September 8, 2026, was primarily driven by significant slumps in the mining, trade, and manufacturing sectors. This contraction follows six consecutive quarters of expansion, with the first quarter of 2026 growth revised down to 0.4% from 0.5%. On the production side, mining activity fell by 2.7%, with notable declines in platinum-group metals, manganese ore, gold, and iron ore. Manufacturing contracted by 1.5%, with seven out of ten divisions recording negative growth, including food and beverages, furniture, and basic iron and steel. The trade industry also shrank by 1.9%, reflecting weaker activity in wholesale, motor, and food and beverage sectors. From the expenditure perspective, economic growth was constrained by a sharp 4.9% increase in imports, largely driven by trade in machinery, electrical equipment, and mineral products.