Western Cape Minister of Agriculture, Economic Development and Tourism, Ivan Meyer, has welcomed the province’s positive economic performance in the first quarter of 2026, with the Western Cape economy growing by 0.6% quarter-on-quarter, outpacing national growth of 0.5%.
The latest GDP figures highlight the province’s resilience and its ability to sustain growth despite ongoing global and domestic economic pressures.
“The Western Cape economy continues to demonstrate resilience and adaptability. Our growth of 0.6% in the first quarter of 2026, above the national average, reflects the strength of our diversified economy and the impact of our focus on enabling a competitive business environment,” said Minister Meyer.
Key Drivers of Growth
Growth in the province was broad-based, with eight out of ten sectors recording expansion, led by:
- Finance sector – the largest contributor to growth
- Agriculture sector – strong performance driven by horticulture and export activity
- Tourism and trade – supported by increased international arrivals and major events
The provincial economy reached an estimated R684 billion in Q1 2026, up from R679.9 billion in the previous quarter.
Agriculture recorded particularly strong momentum:
- Output grew by 3.9% quarter-on-quarter
- Apple exports increased by 34% year-on-year
- Grape exports rose by 2.3%
Tourism also delivered encouraging results, with international arrivals to Cape Town International Airport increasing by more than 10%, supported by major cultural and sporting events.
Resilience Despite Challenging Conditions
Minister Meyer noted that the province’s growth comes despite limited direct benefits from elevated global commodity prices and a challenging domestic demand environment.
Nationally, economic growth this quarter was largely driven by reduced imports rather than strong domestic consumption, while household spending and investment remained subdued.
“What stands out is that the Western Cape is growing not because of external advantages, but because of solid fundamentals; strong sectors, growing exports, and increasing investor confidence,” said Minister Meyer.
Positive Business Confidence
Encouragingly, the Western Cape is currently the only province with business confidence above the neutral level, with the index increasing to 55 in Q2 2026.
“Rising business confidence signals that our province remains the destination of choice for investment, innovation and job creation,” Minister Meyer added.
Outlook
While the outlook for the second quarter remains uncertain due to global trade pressures, fuel costs and weather-related risks, there are positive developments:
- Expanded export opportunities through duty-free access to China under CAEPA
- Continued diversification of export markets
- Strong underlying demand in tourism and services
“We remain focused on driving inclusive growth and job creation. By strengthening exports, supporting key sectors and building resilience, we are positioning the Western Cape economy for sustained growth,” concluded Minister Meyer.
Media enquiries:
Daniel Johnson
Media Liaison Officer to Provincial Minister Ivan Meyer
Email: Daniel.Johnson@westerncape.gov.za
