By Okojie Annabelle Ofure
September 10 2026
South Africa’s economic recovery suffered a setback in the second quarter of 2026, with gross domestic product (GDP) contracting by 0.2 per cent and ending six consecutive quarters of expansion.
Statistics South Africa (StatsSA) reported on Tuesday that the economy weakened between April and June, with the decline coming less than two months before local government elections where economic conditions are expected to be a major campaign issue.
Mining was the largest drag on growth, contracting by three per cent amid weaker production of platinum-group metals, manganese, gold and iron ore. Trade also declined by 1.9 per cent, ending a six-quarter run of growth.
The manufacturing sector recorded its third consecutive quarterly contraction, with seven of its 10 divisions reporting reduced output. The broader slowdown was compounded by rising imports and declining investment, while export growth remained relatively modest.
The figures come against the backdrop of continued economic pressures, including stubbornly high unemployment. More than 33 per cent of South Africans remain without jobs, while the economy shed approximately 345,000 jobs during the second quarter, with significant losses recorded in community and social services.
StatsSA had previously cautioned that the conflict in the Middle East could weigh on economic activity after the escalation of hostilities sent fuel prices sharply higher earlier in the year.
The weakening economy could further complicate the political fortunes of the African National Congress (ANC), which lost its national parliamentary majority in 2024 for the first time since the end of apartheid. The party was subsequently compelled to form a coalition government with opposition parties.
As voters head towards the November local elections, the latest economic figures are likely to intensify scrutiny of the government’s record on growth, employment and living standards.
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