South African economy contracts 0.2% in second quarter, ending 6-quarter growth streak
Mining, trade and manufacturing sectors drive contraction in second quarter
Mucahithan Avcioglu
08 September 2026•Update: 08 September 2026
ISTANBUL
<a href="https://absafricatv.com/australia-reveal-strong-squad-for-south-africa-test-series-icc-world-test-championship/" title="Australia reveal strong squad for South Africa Test series | ICC World Test Championship”>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) showed that declines in the mining, trade and manufacturing sectors weighed on economic activity.
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 10 divisions recorded declines, with food and beverages as well as iron, steel and metal products among the largest contributors to the downturn.
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.
