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08.09.202609:00:00UTC+00South Africa Slips into Contraction as Q2 2026 GDP Falls 0.2% QoQ Annualized

South Africa’s economy moved into reverse in the second quarter of 2026, with annualized quarter‑on‑quarter GDP registering a decline of 0.2%, according to data updated on 8 September 2026. This marks a deterioration from the previous quarter’s 0.5% annualized expansion, signaling a loss of momentum in the short-term growth trend.

The figures are based on a quarter‑on‑quarter comparison, where the current reading reflects the change in GDP from the second quarter to the first quarter of 2026, while the prior 0.5% figure captured the change from the fourth quarter of the previous year to the first quarter. The shift from modest growth to slight contraction suggests that economic activity has softened, raising questions about the resilience of South Africa’s recovery and the outlook for the second half of 2026.

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