South Africa’s economic recovery has suffered a setback, with the economy contracting by 0.2% in the second quarter of 2026, according to Statistics South Africa (Stats SA).
The decline brings an end to six consecutive quarters of economic growth. The economy had expanded by 0.4% during the first quarter of the year.
Mining was one of the biggest contributors to the contraction, recording a 3.0% decline during the quarter.
Stats SA attributed the drop to lower production across several major commodities, including platinum group metals, manganese ore, gold and iron ore.
The trade sector also weakened, contracting by 1.9% and adding to the pressure on overall economic activity.
However, some parts of the economy continued to record growth. Transport and communication increased by 0.9%, supported largely by stronger activity in land transport.
On the expenditure side, rising imports weighed on economic growth. Imports increased by 4.9% during the second quarter, driven mainly by higher imports of machinery and electrical equipment, as well as mineral products.
Investment activity also remained subdued, limiting the economy’s ability to expand at a stronger pace.
Exports offered some relief, increasing by 0.9% over the quarter. The growth was largely driven by higher exports of pearls, precious and semi-precious stones, and precious metals.
The latest figures highlight the continued challenges facing South Africa’s economy as weak investment, declining mining output and pressure on trade weigh on growth.