South Africa GDP shrank 0.2% in Q2 2026 as Iran-war impact ends growth
South Africa’s GDP contracted 0.2% in Q2 2026 after an 18-month growth run. Weakened demand and higher fuel prices tied to the Strait of Hormuz blockade weighed on mining, trade and manufacturing.
South Africa’s GDP shrank in the second quarter of this year, ending an 18-month stretch of growth in Africa’s biggest economy. Weakened demand and higher fuel prices, caused by the blockade in the Strait of Hormuz, weighed on mining, trade and manufacturing. 6%. South Africa’s central bank raised its main interest rate in May to forestall the war’s inflationary impact and is due to hold its latest rate-setting meeting this month.
" The slowdown, combined with unemployment hitting a four-year high, has fuelled anti-migrant rhetoric and vigilante violence targeting Africans accused of taking jobs and overloading public services ahead of municipal elections in November.