South Africa saw slight growth in GDP in the first quarter of 2026.

This is according to Statistics South Africa (Stats SA), which released the latest GDP figures this morning.

On a quarter-to-quarter basis, GDP expanded by 0.5% in the first quarter of 2026, up from 0.4% in the fourth quarter of 2025, and on an annualised basis, GDP increased by 1.9%, up from 0.8% in the fourth quarter.

The quarterly growth rate beat the expectations of most economists, with consensus forecasts for the first quarter having been around 0.3%.

The sectors that contributed most to the quarterly growth rate were agriculture (up 3.9% on a quarterly basis), finance (0.9% quarterly increase), and the mining, trade, and transport and communication sectors (all up 0.7% on a quarterly basis). Manufacturing was the only sector to decline in the first quarter, falling by 0.8%.

Concerningly, gross fixed capital formation, a vital aspect of a growing economy, declined by 1.1% on a quarterly basis in the first three months of 2026. As a share of the South African economy, gross fixed capital formation fell to 13.1% in the first quarter of 2026 from 13.6% compared to the fourth quarter of 2025. For the South African economy to reach growth levels that would significantly reduce our unemployment and poverty rate, gross fixed capital formation would need to be closer to 25%.

Stats SA noted that the impact of the Iran war, particularly the increase in fuel prices, could be reflected in the second-quarter GDP figures, which are due to be released in September.