Notwithstanding a year of unprecedented economic performance in South Africa, underscored by a five-year peak in job creation and an estimated Gross Domestic Product of $410 billion, the nation has commenced the current year with a dampened economic sentiment.
- South Africa started the year with low economic sentiment despite excellent performance in 2025, including record job creation and a GDP of $410 billion.
- The economic sentiment index dropped to 131.4 in January 2026 from 133.2 in December 2025, though the average for 2025 was the highest since 2013.
- Declines in manufacturing, exports, and new vehicle sales contributed to subdued business confidence.
- Despite the sentiment dip, indicators like increased tourism and rising stock prices suggest ongoing economic resilience.
The South African Chamber of Commerce and Industry, via its economic sentiment index, recently revealed that January in the Southern African country began in relatively low spirits.
The group’s measure of sentiment fell to 131.4 in January 2026, from 133.2 the previous month, while averaging 121.7 in 2025, the largest average since 2013.
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“Manufacturing, merchandise export volumes, and the number of new vehicles sold negatively echoed through the business climate,” the group disclosed in a statement on Wednesday.
The shortfall is against the backdrop of the previous fiscal year, which was often defined by its economic gains.
From an outstanding currency recovery to boasting a market that experienced exponential job growth, South Africa in 2025, although not without its challenges, recorded significant wins.
While constituting an interesting development, the South African Chamber of Commerce and Industry relayed that January figures shouldn’t be seen as too alarming.
![Aerial view of Durban, South Africa. [Stock Photo/Getty Images]](https://ocdn.eu/pulscms/MDA_/5844bece8f1a080be5bae411a3256333.jpg)
According to Statista’s 2025 GDP comparison, South Africa’s economy was projected to be $410 billion, making it the continent’s largest, underscoring both its economic potential and the need to create jobs for millions of job seekers.
The nation is likewise projected to experience economic growth, estimated at 1.4% by the International Monetary Fund.
The country’s wealth is also reaffirmed by having the highest concentration of high-net-worth individuals in Africa.
As seen on Bloomberg, the group stated that a more optimistic perspective is supported by a surge in tourists and rising share prices on the Johannesburg Stock Exchange, notwithstanding the decline.
“Tourism is a vital driver of economic growth, with every 13 international tourist arrivals supporting one job,” President Cyril Ramaphosa said in his state-of-the-nation address last week.
“Our tourism sector made history last year, recording the arrival of 10.5 million visitors,” the president added.
