South Africa’s economy expanded by 0.5 per cent in the first quarter of 2026, marking the sixth consecutive quarter of growth, according to figures released by Statistics South Africa on June 9.
The growth was driven by strong performances in the finance, agriculture, trade and transport sectors, with nine industries contributing positively to overall economic activity during the quarter.
Statistics South Africa said the finance sector contributed 0.2 percentage points to GDP growth, while agriculture grew by 3.9 per cent, supported by increased production of field crops and horticultural products. The trade sector also benefited from stronger wholesale activity, higher food and beverage sales, and increased demand for accommodation services.
Transport and related support services made significant contributions to growth, while mining output rose due to increased production of platinum group metals, gold, chromium ore and diamonds. On the expenditure side, stronger household spending, higher government consumption and lower imports helped support economic expansion.
Manufacturing was the only sector to record a decline, contracting by 0.8 per cent during the quarter and registering its second consecutive quarterly downturn. Despite the positive performance, analysts warned that rising global oil prices linked to tensions in the Middle East could pose risks to growth in the second quarter by increasing fuel costs.
Independent analyst Sandile Swana said the latest figures showed the economy remained on a positive path. He noted that concerns over higher tariffs affecting key industries, particularly agriculture and automotive manufacturing, had not materialised, partly because South Africa had continued to expand exports to markets across Asia and Africa.
In a statement, the South African government said the latest GDP figures reflected continued progress and demonstrated that measures aimed at supporting economic recovery, investment and growth were having a positive impact on the country’s economic performance.