By: Buhle Mbhele
South Africa’s economy grew by 0.5% in the first quarter of 2026, according to the latest data released by Statistics South Africa, with the agriculture sector playing a leading role in the expansion.
The agriculture industry recorded growth of 3.9%, marking its sixth consecutive quarter of expansion and making it one of the strongest-performing sectors during the period.
According to Stats SA, field crops and horticultural products, particularly fruit production, were the key drivers behind the sector’s improved performance. The continued growth highlights the resilience of the agricultural industry despite ongoing challenges such as climate variability and infrastructure constraints.
Several other sectors also contributed positively to economic growth during the quarter.
The finance industry remained the largest positive contributor on the production side of the economy, expanding by 0.9% and contributing 0.2 of a percentage point to overall gross domestic product (GDP) growth. The sector’s performance reflects sustained activity across financial services and related industries.
The trade sector extended its gains for a sixth consecutive quarter, supported by stronger activity in wholesale trade, motor trade, food and beverages, as well as accommodation services. Retail trade was the only segment within the sector to show no growth during the quarter.
Meanwhile, the transport and communication industry grew by 0.7%, driven by positive performances in land transport, air transport and transport support services. However, communications activity declined during the quarter, partially offsetting gains elsewhere in the sector.
The mining industry also recorded growth, supported by increased production of platinum group metals, gold, chromium ore and diamonds. The improved output from these commodities helped strengthen the sector’s contribution to the economy.
The latest figures suggest that while South Africa’s economic recovery remains modest, growth is becoming increasingly broad-based, with agriculture, finance, trade, transport and mining all contributing to the positive first-quarter outcome.
