South Africa’s economy expanded faster than expected in the first quarter of 2026, extending its growth streak even as weak household spending and falling investment exposed persistent pressure on domestic demand.
South Africa’s economy grew faster than expected in the first quarter, defying forecasts of slower expansion even as weak household spending, falling investment and early pressure from the Iran war exposed vulnerabilities in the recovery.
Gross domestic product rose 0.5% in the three months through March, accelerating from 0.4% in the previous quarter, Statistics South Africa said on Tuesday.
The result exceeded the 0.3% median forecast in a Bloomberg survey of 15 economists and marked the sixth consecutive quarter of economic growth.
Consequently, the expansion supports South Africa’s effort to consolidate its position as Africa’s largest economy, with the International Monetary Fund projecting nominal GDP of about $480 billion in 2026.
