{"id":19603,"date":"2026-06-09T11:05:40","date_gmt":"2026-06-09T09:05:40","guid":{"rendered":"https:\/\/www.statssa.gov.za\/?p=19603"},"modified":"2026-06-09T11:13:23","modified_gmt":"2026-06-09T09:13:23","slug":"gdp-expands-by-05","status":"publish","type":"post","link":"https:\/\/www.statssa.gov.za\/?p=19603","title":{"rendered":"GDP expands by 0,5%"},"content":{"rendered":"\n

The South African economy maintained its positive momentum in the first quarter of 2026 (January\u2013March). Real gross domestic product (GDP) increased by 0,5%,1<\/sup> 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.<\/p>\n\n\n\n

Nine industries were stronger<\/strong><\/p>\n\n\n\n

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 & communication also made notable contributions (see Figure 1 below).<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Agriculture grew for a sixth consecutive quarter, expanding by 3,9%. Field crops and horticulture products (particularly fruit) underpinned the industry\u2019s stronger performance.<\/p>\n\n\n\n

The trade industry also extended its gains for a sixth straight quarter, supported by stronger wholesale trade, motor trade, food & beverages and accommodation. Retail trade was the exception, recording zero growth.<\/p>\n\n\n\n

Positive results from land transport, air transport and transport support services pushed the transport & communication industry higher by 0,7%. Economic activity in communications, however, was down in the quarter.<\/p>\n\n\n\n

Mining was stronger on the back of higher production levels for platinum group metals, gold, chromium ore and diamonds.<\/p>\n\n\n\n

Manufacturing misfired in the first quarter, weakening by 0,8%. This is the industry\u2019s second consecutive decline, dragged lower mainly by the petroleum & chemicals; iron & steel; and wood, paper & publishing divisions. Glass & non-metallic mineral products, motor vehicles & transport equipment, electrical machinery and textiles & clothing were stronger, but not enough to lift the industry into positive territory.<\/p>\n\n\n\n

Expenditure on GDP was also positive<\/strong><\/p>\n\n\n\n

The expenditure side of the economy was lifted by weaker imports, together with a rise in household consumption, government consumption and exports (see Figure 2 below).<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

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 (see Figure 3 below).<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Consumers spent less on food & non-alcoholic beverages and alcoholic beverages, tobacco & narcotics. This was consistent with the zero per cent growth rate in retail trade on the production side of the economy. Spending on restaurants & hotels was also down. The miscellaneous goods & services category was the most significant negative contributor, reflecting a decline in insurance expenditure.<\/p>\n\n\n\n

Following two consecutive increases, capital formation pulled back in the first quarter, declining by 1,1%. This was mainly due to a decrease in investments in machinery & other equipment and residential buildings.<\/p>\n\n\n\n

The slowdown in imports was largely influenced by weaker trade in precious metals, mineral products, machinery & electrical equipment, textiles & textile articles, and animal & vegetable fats and oils. Exports rose by 0,5%, driven by rise in the trade of mineral products, vegetable products (reflecting the rise in the production of fruit in the agricultural industry), and prepared foodstuffs, beverages & tobacco.<\/p>\n\n\n\n

The manufacturing, trade and mining industries dipped into their stockpiles to meet demand, resulting in an annualised R22,4 billion drawdown in inventories. Manufacturing\u2019s drawdown was the largest (-R14,5 billion).<\/p>\n\n\n\n

The impact of the conflict in the Middle East?<\/strong><\/p>\n\n\n\n

The conflict in the Middle East began towards the end of February, more than half-way through the first quarter. The impact of the conflict was felt in the sharp fuel price increases in April, which may reflect in the second quarter GDP estimates. These will be released on 08 September 2026.<\/p>\n\n\n\n

For more information, download the GDP release, media presentation and Excel files here.<\/a><\/p>\n\n\n\n

1 <\/sup>The quarter-on-quarter rates are seasonally adjusted and in real (volume) terms (constant 2015 prices).<\/p>\n\n\n\n

Similar articles are available on the Stats SA website and can be accessed here<\/a>.<\/p>\n\n\n\n

For a monthly overview of economic indicators and infographics, catch the latest edition of the Stats Biz newsletter here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The South African economy maintained its positive momentum in the first quarter of 2026 (January\u2013March). Real gross domestic product (GDP) increased by 0,5%,1 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   read more »<\/a><\/p>\n

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