Economists warned that rising global energy prices linked to instability in the Middle East could dampen economic activity for the remainder of the year.
South Africa’s economy delivered a stronger-than-expected performance in the first quarter of 2026, prompting economists to welcome the latest growth figures while cautioning that escalating tensions in the Middle East could undermine momentum in the months ahead.
Data released by Statistics South Africa on Tuesday showed that gross domestic product (GDP) expanded by 0.5% in the first quarter of 2026, up from 0.4% growth recorded in the final quarter of 2025.
This growth print comes on the back of unprecedented fuel price hikes as a result of the surge in the Brent crude oil price after Iran closed the Strait of Hormuz chokepoint, over which roughly 20% of the world's global petroleum and liquefied natural gas normally passes through, in response to attacks by the United States.
The outcome exceeded most economists’ expectations and marked a sixth consecutive quarter of economic expansion, providing further evidence that South Africa’s gradual recovery remains intact despite persistent structural challenges.
