South Africa's economy shrank by 0.2% over a quarter in Q2 2026, following a downwardly revised 0.4% expansion in Q1 and more than the expected 0.1% decline. This marked the first economic downturn since Q3 2024, snapping its longest quarterly growth run in almost a decade, amid the fallout from the Middle East conflict. Three of the ten industries contracted, with trade down 1.9% as higher oil prices raised transport costs, while energy-intensive manufacturing and mining fell 1.8% and 3.0%, respectively. On a yearly basis, the GDP rose by 0.9% in Q2, decelerating from 1.9% in Q1 and missing market estimates of a 1% growth.