South African rand slips ahead of GDP data expected to show a decline
- The rand traded at 16.0375 against the dollar , about 0.2% weaker than its close
The South African rand weakened as investors awaited Q2 GDP data, expected to show the economy contracted, ending six quarters of growth.
- Expected contraction of South Africa's Q2 GDP.
- Sectors contributing to the economic slowdown.
- Performance of South Africa's benchmark government bond.
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%.