South Africa’s Economy Set for Third Consecutive Quarterly Expansion

South Africa’s economy is on track for its third straight quarter of growth, driven by strong rebounds in the manufacturing and mining sectors. Analysts forecast a modest 0.4% expansion for the second quarter, buoyed by improved economic performance and demand-driven price surges for commodities like platinum and palladium. However, this fragile recovery faces a severe new threat from the recently imposed US tariffs. A hefty 30% levy on key exports is expected to cripple the automotive and agricultural industries, potentially costing tens of thousands of jobs and stifling growth in the latter half of the year. While lower interest rates have supported consumer spending, soaring unemployment and high utility costs continue to place immense pressure on households and business confidence.

Bloomberg