South Africa’s economy remains on a recovery path, but rising global pressures and cost dynamics are slowing momentum and reshaping the outlook for the months ahead, says professional services firm PwC South Africa in its 'South Africa Economic Outlook – Mid-2026 review'.
South Africa’s economic recovery is holding, but it is becoming increasingly uneven and fragile. While domestic conditions have improved, the economy is now facing renewed pressure from rising costs and global uncertainty, says PwC South Africa chief economist and Africa sustainability leader Lullu Krugel.
Growth will remain modest. Real GDP is expected to track close to the South African Reserve Bank’s (SARB’s) forecast of about 1.2% this year, which reflects a more stable but constrained economic environment.
The economy has delivered six consecutive quarters of growth, with GDP having expanded by 0.5% in the first quarter of this year.
However, momentum is beginning to ease. Business confidence has declined sharply and forward-looking indicators such as the manufacturing Purchasing Managers’ Index remain only marginally above neutral, she says.
