South Africa’s economy expanded by a better-than-expected 0.8% in the second quarter of 2025, a significant acceleration from the marginal 0.1% growth seen in the first three months of the year.
The latest figures from Statistics South Africa point to a resilient performance driven by a rebound in key industrial sectors and robust consumer spending.
The welcome uptick was largely fueled by renewed activity in manufacturing and mining. Both sectors reversed previous declines, posting impressive gains.
The manufacturing industry grew by 1.8%, with the automotive and chemical products divisions leading the charge.
Mining saw an even stronger performance, expanding by 3.7%, its fastest growth rate since early 2021, thanks to increased production of platinum group metals and gold.
The trade, catering, and accommodation sector also played a crucial role, growing by 1.7%. This indicates healthy consumer activity, with households increasing their spending.
This was reflected on the demand side of the economy, where household consumption rose for the fifth consecutive quarter, increasing by 0.8%.
Consumers spent more on miscellaneous goods and services, particularly insurance, as well as on restaurants, hotels, and clothing.
Further contributing to the positive GDP figure was a 2.1% decline in imports, which helped bolster the net trade balance. A build-up in inventories for the first time in over a year also provided a boost.
However, the news was not positive across all sectors. The construction industry continued its slump, contracting for the third straight quarter.
Weaker activity in residential and non-residential building projects dragged the sector down, despite a rise in construction works.
Similarly, the transport, storage, and communication industry faced headwinds, with declines in land transport services weighing on its overall performance.
Exports also saw a downturn, limiting the economy’s full growth potential.
While the 0.8% expansion provides a dose of optimism, economists note that sustained momentum will be necessary to address the country’s broader economic challenges.
Nevertheless, the second-quarter results offer a solid foundation, showing resilience in core areas of the economy.
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