South Africa’s economy contracted for the first time in nearly two years, with GDP falling 0.2% in the second quarter of 2026.

The downturn was driven by weakness across key sectors, including mining, manufacturing and trade. Mining output declined 3%, while manufacturing contracted 1.8% for its third consecutive quarterly decline. Trade also fell 1.9%, ending six consecutive quarters of growth.

Investment declined for a second straight quarter as businesses and public corporations reduced capital spending. The economy also shed 345,000 jobs during the quarter, while unemployment remained above 33%.

The slowdown comes as South Africa faces a politically sensitive period ahead of local government elections in November. Opposition parties are expected to target the government over weak growth, unemployment and rising living costs.

Economists now expect annual growth of around 1.2% to 1.5%, below the government’s earlier target.


South Africa Economy Crisis | GDP Contracts 0.2% As Jobs, Investment Take Hit

South Africa is witnessing escalating anti-immigration unrest as protests and riots force thousands of African migrants to flee their homes. Many migrants are reportedly sleeping on pavements, fearing attacks, while hundreds of undocumented migrants are attempting to return to Zimbabwe by crossing the dangerous Limpopo River, known for crocodiles and hippos. The violence has intensified across several cities, with anti-immigration groups demanding that undocumented migrants leave the country. Officials say the crisis has exposed broader challenges surrounding illegal immigration, border security, and regional stability.

Anti-immigration riots rock south africa, thousands of migrants flee | south africa border crisis

In South Africa, a large fire swept through the parliament building in cape town, damaging the 138-year-old national complex. An investigation is underway, officials though, are afraid that the damage could be extensive.

Fire sweeps through Parliament complex in Cape Town, South Africa

However, the agriculture, forestry and fishing industry increased by 27.8 percent and contributed 0.5 of a percentage point to GDP growth

South Africa’s GDP declines by 2 percent in 2020 Q1