National Treasury has warned that logistics bottlenecks, weak public infrastructure and the outbreak of foot-and-mouth disease remained risks to the outlook.
South Africa's economic growth outlook has weakened in recent months, with business confidence falling sharply and economists lowering their forecasts as higher fuel costs, inflation pressures and global uncertainty weigh on the economy.
The latest sign came this week when Investec revised its 2026 gross domestic product (GDP) growth forecast lower to 1.3% from 1.5%, citing the impact of higher oil prices on the trade account as well as weaker investment prospects.
The downgrade comes as the RMB/BER Business Confidence Index fell to 39 in the second quarter from 47 previously, remaining below the neutral 50 level that separates optimism from pessimism.
According to Investec, the survey was conducted between 14 and 25 May, after two monthly fuel price increases totalling R6.33 a litre for petrol and R13.52 a litre for diesel but before the diesel decline this past Wednesday, although petrol did increase by R1.43 a litre.
