JOHANNESBURG - South Africa’s economic growth has gone into reverse, with the economy shrinking by 0.2 percent in the second quarter of 2026, bringing a six-quarter run of growth to an end.
The contraction comes after the economy expanded by 0.4 percent in the first quarter, according to Statistics South Africa (Stats SA).
Mining was among the biggest drags on the economy, with activity contracting by 3.0 percent.
The decline was driven by lower production of several key commodities, including platinum group metals, manganese ore, gold and iron ore.
The trade industry shrank by 1.9 percent in the second quarter, adding further pressure to the economy.
Not every sector moved backwards, however.
Transport and communication expanded by 0.9 percent, supported by an increase in land transport activity.
On the expenditure side, a sharp increase in imports put further pressure on growth.
Stats SA said imports jumped by 4.9 percent in the second quarter, largely driven by increased trade in machinery and electrical equipment, as well as mineral products.
Investment also remained subdued, constraining economic growth.
Exports provided some positive news, growing by 0.9 percent during the quarter. Higher exports of pearls, precious and semi-precious stones and precious metals largely drove the increase.
Read more: SA economy suffering from low GDP growth