South African rand slips ahead of GDP data expected to show a decline

JOHANNESBURG: The South African rand weakened in early trade on Tuesday as investors ​awaited second-quarter gross domestic product (GDP) data, ‌which is expected to show the economy contracted. At 0625 GMT, the rand traded at 16. 0375 against ​the dollar, about 0. 2% weaker than ​its close. Statistics South Africa is due ⁠to release GDP figures at 0900 GMT, ​offering fresh clues on the health of ​Africa’s most industrialised economy. Economists polled by Reuters forecast the economy contracted 0. 1% quarter on quarter, after growing ​0. 5% in the first quarter of ​2026. On an annual basis, growth is expected at ‌1. 2%. “Such ⁠an outcome would end six consecutive quarterly increases, but the headline may flatter underlying momentum, ” ETM Analytics said in a note. 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%.

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