South Africa's GDP contracts by 0.2 pct in Q2-Xinhua

South Africa's GDP contracts by 0.2 pct in Q2

Source: Xinhua| 2026-09-09 20:54:15|Editor: huaxia

PRETORIA, Sept. 9 (Xinhua) -- South Africa's gross domestic product (GDP) contracted by 0.2 percent in the second quarter (Q2) of 2026, snapping a six-quarter growth streak, according to data released by Statistics South Africa (Stats SA) on Tuesday.

The latest data followed a 0.4-percent expansion in the first quarter of the year, and Statistician-General and Head of Stats SA Risenga Maluleke told Xinhua that the contraction was largely in the areas of manufacturing and trade.

Data shows that the trade, catering and accommodation industry contracted by 1.9 percent in Q2, while manufacturing shrank by 1.8 percent, marking its third consecutive quarterly decline.

"Mining also had a contribution of negative 0.1 percentage point, and that was largely in the areas of iron ore, manganese ore, and the platinum metal groups," Maluleke added.

Despite the broader contraction, growth in sectors including finance, real estate and business services and transport partly offset the downturn.

Speaking to Xinhua, the Congress of South African Trade Unions (COSATU), which represents almost 2 million workers, called for government action to support workers and the economy.

COSATU Parliamentary Coordinator Matthew Parks said the contraction in key sectors reflected the impact of higher fuel prices and declining global tourism, which had put pressure on workers, consumers, small businesses and the broader economy.

"It is critical that government put in place an economic and social relief package to help shield the working class and the economy from the steep hikes in international oil and thus domestic fuel prices, inflation and the inevitable global economic slowdown," Parks said.

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