South Africa : economic growth seen at 1.6% in 2026 under budget outlook

South Africa’s economy is projected to grow by 1.6% in 2026, up from 1.4% in 2025, Finance Minister Enoch Godongwana announced in the official 2026 Budget Speech presented in Cape Town on February 25, 2026, according to the government’s official published budget documents. 

The improved outlook reflects stronger domestic activity, enhanced investor confidence and ongoing structural reforms. 

Over the medium term, growth is expected to average 1.8% and reach 2% by 2028, indicating a gradual economic recovery despite logistics and infrastructure constraints.