South Africa: GDP Increases By 0,5 Percent in the First Quarter of 2026 (original) (raw)

Statistics South Africa (Stats SA) says the gross domestic product (GDP) increased by 0,5% in the first quarter of 2026, indicating that the economy has maintained its positive momentum.

"Real GDP increased by 0,5%, marking a sixth consecutive quarter of growth. Finance, agriculture, trade and transport did the heavy lifting on the production (supply) side of the economy. The expenditure (demand) side was supported by a decline in imports and a rise in household consumption, government consumption and exports," Stats SA said on Tuesday.

The finance industry was the main positive contributor on the production side of the economy, expanding by 0,9% and adding 0,2 of a percentage point to GDP growth.

Agriculture, trade, and transport and communication also made notable contributions.

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For a sixth consecutive quarter, agriculture grew, expanding by 3,9%.

"Field crops and horticulture products (particularly fruit) underpinned the industry's stronger performance.

"The trade industry also extended its gains for a sixth straight quarter, supported by stronger wholesale trade, motor trade, food and beverages and accommodation. Retail trade was the exception, recording zero growth.

"Positive results from land transport, air transport and transport support services pushed the transport and communication industry higher by 0,7%," Stats SA said.

However, economic activity in communications was down in the quarter.

Mining was stronger on the back of higher production levels for platinum group metals, gold, chromium ore and diamonds.

"Manufacturing misfired in the first quarter, weakening by 0,8%. This is the industry's second consecutive decline, dragged lower mainly by the petroleum and chemicals; iron and steel; and wood, paper and publishing divisions.

"Glass and non-metallic mineral products, motor vehicles and transport equipment, electrical machinery and textiles and clothing were stronger, but not enough to lift the industry into positive territory," Stats SA said.

Expenditure on GDP

The expenditure side of the economy was lifted by weaker imports, together with a rise in household consumption, government consumption and exports.

Household consumption expanded by a marginal 0,1%, the lowest growth rate in eight quarters.

Household utilities (such as water and electricity) and transport were the largest positive contributors.

Consumers spent less on food and non-alcoholic beverages, alcoholic beverages, tobacco and narcotics.

"This was consistent with the zero per cent growth rate in retail trade on the production side of the economy. Spending on restaurants and hotels was also down. The miscellaneous goods and services category was the most significant negative contributor, reflecting a decline in insurance expenditure.

"Following two consecutive increases, capital formation pulled back in the first quarter, declining by 1,1%. This was mainly due to a decrease in investments in machinery and other equipment and residential buildings," Stats SA said.

The slowdown in imports was largely influenced by weaker trade in precious metals, mineral products, machinery and electrical equipment, textiles and textile articles, and animal and vegetable fats and oils.

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Exports rose by 0,5%, driven by a rise in the trade of mineral products, vegetable products (reflecting the rise in the production of fruit in the agricultural industry), and prepared foodstuffs, beverages and tobacco.

The manufacturing, trade and mining industries dipped into their stockpiles to meet demand, resulting in an annualised R22,4 billion drawdown in inventories.

Manufacturing's drawdown was the largest (-R14,5 billion).

The impact of the conflict in the Middle East

The conflict in the Middle East began towards the end of February, and continued more than halfway through the first quarter.

Stats SA said the impact of the conflict in the Middle East was felt in the sharp fuel price increases in April, which may reflect in the second quarter GDP estimates.

These will be released on 08 September 2026.