Standard Bank reported that client confidence has been negatively impacted by ongoing conflicts in the Middle East and rising inflation. Additionally, high interest rates contributed to the bank's performance, leading to only 'moderate growth' in its home loan portfolio.

South African households are experiencing a two-year high in inflation, reaching 4.5%. This increase in prices is attributed to the ongoing US-Israeli conflict with Iran, which is impacting the economy.

Nedbank announced a downgrade to its 2026 domestic economic output outlook, attributing this change to a mixed economic environment observed in the first five months of the year. The bank also indicated that the central bank is expected to maintain current interest rates in response to rising inflation.

According to The South African Biz, the Consumer Confidence Index (CCI) in South Africa decreased to -19 in the second quarter of 2026, down from -7 in the first quarter, indicating a negative sentiment among wealthy South Africans.

The World Bank has indicated that the economic recovery in Sub-Saharan Africa is losing momentum, projecting a growth rate of 4.1 percent for 2026, the same as in 2025. This figure represents a downward revision of 0.3 percentage points from a previous forecast of 4.4 percent, as noted in the latest Africa Economic Update released in April.

South Africans have a limited time to submit their feedback on the proposed tax changes outlined in the 2026 draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill. The deadline for public input is approaching, emphasizing the importance of citizen engagement in the legislative process.