South Africa’s economy expanded by 0.5% in the first quarter of 2026, slightly outperforming expectations and marking the sixth consecutive quarter of positive growth. Finance was the largest contributor, expanding 0.9% and adding 0.2 percentage points to GDP, followed by agriculture, trade, transport, and communications. On the expenditure side, household consumption, government spending, and exports all rose, while imports declined. However, manufacturing contracted for the second straight quarter, falling 0.8 percent, weighed down by the petroleum, chemicals, iron, steel, and publishing sectors. Economists welcomed the result, noting that analysts had forecast growth of around 0.4%. However, experts caution that the current pace remains insufficient to address South Africa’s chronic unemployment challenges.
eNCA