Key Takeaways
- The South African rand weakened in early trade.
- Economists predict a contraction in the second-quarter GDP.
- Statistics South Africa will release the GDP figures at 0900 GMT.
The South African rand weakened in early trade on Tuesday, trading at 16.0375 against the dollar, about 0.2% weaker than its close.
Investors were awaiting second-quarter gross domestic product (GDP) data, expected to show the economy contracted.
Statistics South Africa is due to release the GDP figures at 0900 GMT, offering fresh insights into the health of Africa’s most industrialised economy.
Economists polled by Reuters forecast a contraction of 0.1% quarter on quarter, after a 0.5% growth in the first quarter of 2026.
On an annual basis, growth is expected at 1.2%.
ETM Analytics stated, “Such an outcome would end six consecutive quarterly increases, but the headline may flatter underlying momentum.”
Nedbank economists forecast a contraction of 0.2%, citing weakness in mining, manufacturing, electricity, gas and water, and domestic trade.
Agriculture and parts of the services sector are expected to have continued supporting economic activity.
South Africa’s benchmark 2035 government bond also weakened in early deals, with the yield up 4 basis points to 8.615%.
