South Africa's Economy Grows 0.5% in Q1, Beating 0.3% Forecast for Sixth Straight Quarter
Updated
Updated · Business Insider Africa · Jun 9
South Africa's Economy Grows 0.5% in Q1, Beating 0.3% Forecast for Sixth Straight Quarter
3 articles · Updated · Business Insider Africa · Jun 9
Summary
0.5% quarterly GDP growth in the three months through March beat the 0.3% median forecast and accelerated from 0.4% in Q4 2025, extending South Africa’s expansion streak to six quarters.
Finance, agriculture, trade and transport drove the gain, with nine of 10 industries expanding; finance rose 0.9% and agriculture 3.9%, while manufacturing fell 0.8%.
Domestic demand stayed weak as household spending grew just 0.1%—the slowest in eight quarters—and fixed investment dropped 1.1%, leaving net exports to contribute the biggest lift at 0.9 percentage points.
Markets welcomed the data, pushing the FTSE/JSE All Share Index up nearly 1% above 112,000, but the recovery still hinges on services, farming and trade rather than broad consumer and business strength.
The outlook is clouded by the Middle East conflict, which has raised energy and fertiliser costs; the central bank has cut its 2026 growth forecast to 1.2% from 1.4% and already delivered its first rate increase in three years.