South Africa’s growth momentum falters in Q2-2026

SOUTH AFRICA - Report 09 Sep 2026 by Iraj Abedian

South Africa’s quarter-on-quarter real GDP declined by 0.2% during the second quarter of 2026, following the first quarter’s 0.4% q/q increase, bringing an end to six consecutive quarters of positive growth. On an annual basis, the economy was still 0.9% larger than in the second quarter of 2025, indicating that the broader recovery has not been reversed, but that momentum weakened materially during the quarter. The contraction is consistent with the more difficult economic environment that emerged during the quarter, as higher energy costs and renewed inflationary pressures weighed on household purchasing power and business conditions, while elevated global uncertainty constrained confidence and investment. The latest GDP print therefore points less to a broad-based downturn than to a loss of momentum in an already relatively modest recovery.

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