South Africa economy shrinks in second quarter
South Africa's economy contracted 0.2 percent in the second quarter of 2026. The downturn was driven by weak mining and manufacturing output due to the Iran war.
South Africa's economy contracted 0.2% on a seasonally adjusted quarter-on-quarter basis in the second quarter of 2026, marking the first decline in nearly two years. Economists polled by Reuters had forecast a smaller 0.1% contraction. The downturn was driven by spillover effects from the conflict in Iran, which depressed domestic demand and weighed heavily on key industrial sectors.
