SA economy contracts in Q2: Prof Peter Baur shares thoughts

Stats SA data shows that the economy shrank by 0,2% in the second quarter of 2026.

This is the first economic downturn since the third quarter of 2024, breaking the longest quarterly growth run in almost a decade, amid the fallout from the Middle East war.

Mining, trade, catering and accommodation, and manufacturing dragged down the quarterly growth.

We are now joined via video link by Associate Professor in the School of Economics at the University of Johannesburg, Prof Peter Baur.

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