Tanzania official addresses trade restrictions amid import disputes with Malawi and South Africa.
South Africa’s economy contracted 0.2% in the second quarter, reversing 0.4% growth in the first three months of the year and marking its first decline since the third quarter of 2024. Mining fell 3%, manufacturing dropped 1.8%, and trade, catering, and accommodation declined 1.9%. Trade and manufacturing each subtracted 0.2 percentage points from GDP, and mining removed 0.1 point. Agriculture, electricity, gas and water, and transport provided some support, albeit though their contribution was small. Household spending edged up 0.4%, but imports grew much faster than exports, subtracting 1.1 percentage points from growth. Economists said the result was not as weak as feared and could still leave the economy on track for 1.4% to 1.6% growth this year. However, unemployment climbed to 33.6%, underscoring the strain on households.