Image Source: Supply Chain Brain
Local – South Africa’s economy held its growth momentum in the first quarter of 2026, with real gross domestic product expanding for the sixth consecutive quarter. Finance, agriculture, trade and transport drove output on the production side, while household spending and exports supported demand.
According to Stats SA, nine of South Africa’s major industries recorded stronger output in the January-to-March period, with finance, real estate and business services leading the way. Financial intermediation and auxiliary activities drove the sector’s gains, adding 0.2 percentage points to overall GDP growth.
“The finance, real estate and business services industry increased by 0,9%, contributing 0,2 of a percentage point. Increased economic activities were reported for financial intermediation and auxiliary activities,” Stats SA said.
Agriculture Extends Winning Streak
Agriculture recorded its sixth consecutive quarter of expansion, with field crops and horticulture products, particularly fruit, underpinning the industry’s performance. The sector contributed 0.1 percentage point to overall growth.
“The agriculture, forestry and fishing industry increased by 3,9%, contributing 0,1 of a percentage point. This was mainly due to increased economic activities reported for field crops and horticulture products,” Stats SA said.
Manufacturing contracted for a second straight quarter, with five of the ten divisions in negative territory. Petroleum and chemicals, iron and steel, and wood and paper recorded the largest declines.
“The manufacturing industry decreased by 0,8%, contributing -0,1 of a percentage point. Five of the ten manufacturing divisions reported negative growth rates,” Stats SA said.
Exports Rise as Imports Slow
Household consumption grew marginally while capital investment pulled back, with machinery and residential buildings the main drag. Imports fell 2,6%, weighed down by weaker trade in precious metals and mineral products, while exports rose on stronger trade in mineral and vegetable products.
“Net exports contributed positively — 0,9 of a percentage point — to expenditure on GDP. Exports of goods and services increased by 0,5%, largely influenced by increased trade in mineral products, vegetable products, and prepared foodstuffs, beverages and tobacco,” Stats SA said.
Government Welcomes Results
The government said the results reflected the strength of the economy in a difficult global and domestic environment. The Government Communication and Information System said growth was supported through key sectors including finance, agriculture, trade, and transport.
“Government recognises that more work is required to accelerate growth, create jobs and improve the lives of all South Africans. However, these results reflect continued progress and provide further evidence that measures to support economic recovery, investment and growth are contributing positively to the country’s economic performance,” the GCIS said.
The government added that it would continue working with various stakeholders to implement structural reforms, attract investment, support key economic sectors and create an enabling environment for businesses to grow, invest and create employment opportunities.
