World Economy

South African Economy Contracts as Geopolitical Tensions Weigh on Global Trade

South Africa's economy contracted in the second quarter, ending a six-quarter expansion streak. Manufacturing and mining output declined as Middle East conflicts and shifting trade patterns reshaped supply chains globally.

Air cargo demand proved resilient, growing 8.5 percent year-on-year. However, traditional trade lanes faced headwinds. Africa-bound shipments to Asia stalled while Asian exporters surged ahead. Trade tensions intensified as nations clashed over export policies and sanctions regimes.

Japan's economy expanded faster than initially estimated. Wage gains jumped at their fastest pace in nearly three decades, supporting central bank rate decisions. This created divergent economic trajectories across regions.

Volatile fuel costs and disrupted transport corridors strained logistics operators. Geopolitical uncertainty continued reshaping global supply chains and trade flows.