South Africa's GDP has unexpectedly risen by 0.5% in the first quarter of 2026, offering a glimmer of hope amid economic difficulties. However, experts warn of underlying consumer weaknesses and rising geopolitical tensions that could threaten future growth.
South Africa's Gross Domestic Product (GDP) for the first quarter surprised on the upside showing growth of 0.5% quarter-on-quarter and annual growth moving close to 2%.
While the result offered some encouragement in a difficult economic environment, Citadel Chief Economist, Maarten Ackerman, cautioned that the data reflected conditions before the latest global and domestic headwinds began to intensify.
Ackerman told Business Report, “SA’s first-quarter GDP number came in slightly ahead of expectations and confirms that the economy still has the underlying capacity to generate growth. However, it is important to recognise that this is largely a pre-geopolitical conflict number, supported by the continuation of favourable tailwinds from 2025, including strong commodity prices and another solid contribution from agriculture.”
“Agriculture was the standout performer in the quarter, expanding by 3.9%, while the finance sector remained one of the economy’s most consistent contributors. Encouragingly, growth was relatively broad-based, with all sectors except manufacturing contributing positively,” he highlights.
