Pretoria: South Africa's economy contracted 0.2% quarter-on-quarter in the second quarter of 2026, ending a six-quarter growth streak, official data showed Tuesday. Figures released by Statistics South Africa (Stats SA) indicated that declines in the mining, trade, and manufacturing sectors weighed on economic activity.
According to Anadolu Agency, the mining sector shrank 3% during the quarter, driven by lower production of platinum group metals, manganese ore, gold, and iron ore. The trade sector contracted 1.9%, while manufacturing declined for the third consecutive quarter. Seven of the manufacturing industry's ten divisions recorded declines, with food and beverages as well as iron, steel, and metal products being significant contributors to the downturn.
In contrast, the transport and communication sector expanded by 0.9%. Construction grew for a second consecutive quarter, while agriculture extended its growth streak to seven quarters. South Africa, one of Africa's largest economies and home to one of the continent's most diversified production structures, expanded 0.5% in 2024 and 1.1% in 2025.