The South African Reserve Bank has published its June 2026 Quarterly Bulletin, reporting that South Africa’s real gross domestic product grew by 0.5% in the first quarter of 2026, marking a sixth consecutive quarter of expansion. Growth was driven by continued gains in the tertiary sector and a rebound in agriculture and mining, while the secondary sector contracted for a third straight quarter as manufacturing remained weak. The bulletin also shows a much weaker labour market, with household-surveyed employment down by 345,000 in the quarter and the official unemployment rate rising to 32.7%, while inflation accelerated from March as the war in the Middle East pushed up oil prices, fuel costs and transport prices. Domestic demand was softer than output, with real gross domestic expenditure falling by 0.3% as inventories were drawn down and gross fixed capital formation declined, led by weaker private-sector investment. Net exports made the largest contribution to growth, helping lift the current account surplus to 2.4% of GDP in the first quarter from 0.6% in the previous quarter, as the trade surplus widened to R438 billion. The bulletin also points to higher market volatility after the Middle East conflict, including a weaker rand in March and a jump in 10-year government bond yields, while public finance indicators improved in fiscal 2025/26 with the non-financial public sector borrowing requirement falling by R92.8 billion to R187.4 billion and the national government primary surplus rising to R86.7 billion, although gross loan debt still increased to 78.5% of GDP.
South African Reserve Bank2026-06-30
South African Reserve Bank reports 0.5 percent first quarter growth and 32.7 percent unemployment in Quarterly Bulletin
The South African Reserve Bank’s June 2026 Quarterly Bulletin says South Africa’s economy grew by 0.5% in the first quarter, supported by services and a rebound in agriculture and mining, while manufacturing stayed weak. The labour market deteriorated sharply, with unemployment rising to 32.7%, and inflation accelerated as the Middle East war lifted fuel and transport costs. The current account surplus widened to 2.4% of GDP and fiscal metrics improved, though government debt rose to 78.5% of GDP.