South Africa: GDP Increases By 0,5 Percent in the First Quarter of 2026

Statistics South Africa (Stats SA) says the gross domestic product (GDP) increased by 0,5% in the first quarter of 2026, indicating that the economy has maintained its positive momentum.

"Real GDP increased by 0,5%, marking a sixth consecutive quarter of growth. Finance, agriculture, trade and transport did the heavy lifting on the production (supply) side of the economy. The expenditure (demand) side was supported by a decline in imports and a rise in household consumption, government consumption and exports," Stats SA said on Tuesday.

The finance industry was the main positive contributor on the production side of the economy, expanding by 0,9% and adding 0,2 of a percentage point to GDP growth.

Agriculture, trade, and transport and communication also made notable contributions.

For a sixth consecutive quarter, agriculture grew, expanding by 3,9%.

"Field crops and horticulture products (particularly fruit) underpinned the industry's stronger performance.

"The trade industry also extended its gains for a sixth straight quarter, supported by stronger wholesale trade, motor trade, food and beverages and accommodation. Retail trade was the exception, recording zero growth.

"Positive results from land transport, air transport and transport support services pushed the transport and communication industry higher by 0,7%," Stats SA said.

However, economic activity in communications was down in the quarter.

Mining was stronger on the back of higher production levels for platinum group metals, gold, chromium ore and diamonds.

"Manufacturing misfired in the first quarter, weakening by 0,8%. This is the industry's second consecutive decline, dragged lower mainly by the petroleum and chemicals; iron and steel; and wood, paper and publishing divisions.

"Glass and non-metallic mineral products, motor vehicles and transport equipment, electrical machinery and textiles and clothing were stronger, but not enough to lift the industry into positive territory," Stats SA said.

The expenditure side of the economy was lifted by weaker imports, together with a rise in household consumption, government consumption and exports.

Household consumption expanded by a marginal 0,1%, the lowest growth rate in eight quarters.

Household utilities (such as water and electricity) and transport were the largest positive contributors.

Consumers spent less on food and non-alcoholic beverages, alcoholic beverages, tobacco and narcotics.

"This was consistent with the zero per cent growth rate in retail trade on the production side of the economy. Spending on restaurants and hot