Hope, uncertainty as economy enters second half

Tuesday, July 07, 2026 | 340 Views |

Finding its feet: Morupule B’s improved operations helped electricity stability in the first quarter and also supported broader economic activity. Electricity recorded an increase of 197.7% in the first quarter, compared to a 50.0% decrease in the corresponding quarter of 2025 PIC: MBONGENI MGUNI

The economy grew by 3.5% in the first quarter with expansion in nearly all sectors. Positivity is strengthening in diamonds and the broader mining sector going into the second half of the year. Risks are however also rising, including key credit ratings decisions in September. MBONGENI MGUNI writes

The economy expanded by 3.5 percent in the first quarter, with most sectors recording growth of 0.3 percent or higher, except for agriculture and construction which declined.

The numbers compare to a contraction in the first quarter of 2025 of 0.3 percent and for the Finance Ministry, represent a welcome sign of a possible rebound in the economy this year.

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