South Africa economy shrinks ahead of local elections South Africa’s economy shrank in the second quarter of 2026, snapping a nearly two-year growth streak as the war in Iran weighed on domestic demand, the national statistics agency said Tuesday.
The contraction comes less than two months before local government elections, putting the country’s sluggish economy squarely in the political crosshairs.
Gross domestic product fell 0.2 percent from the previous quarter on a seasonally adjusted basis, StatsSA said.
Mining was the biggest drag, shrinking three percent as production of platinum-group metals, manganese, gold and iron ore fell.
Trade contracted 1.9 percent, ending six straight quarters of growth, while manufacturing posted a third consecutive decline, with seven of its 10 divisions reporting weaker output.
The weakness was compounded by rising imports and a second consecutive quarterly decline in investment, as exports grew only modestly and businesses and public corporations pulled back on capital spending. https://www.iraqinews.com/business/south-africa-economy-shrinks-ahead-of-local-elections/
Iraqi News
South Africa economy shrinks ahead of local elections
South Africa's economy shrank in the second quarter of 2026, snapping a nearly two-year growth streak as the war in Iran weighed on domestic demand...
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