South Africa’s economy grew for a fourth consecutive quarter in July-September 2025, marking its longest expansion since the post-pandemic recovery in 2021.
Growth Figures and Driver:
Gross domestic product(GDP) increased by 0.5% in the third quarter compared to the previous three months, matching economists’ forecasts. This follows a revised growth rate of 0.9% in the second quarter. The expansion was primarily supported by the mining sector, a cornerstone of the national economy which contributed over R470 billion to household income in 2024.
Broader Economic Context:
The quarterly growth occurred alongside mixed sectoral performance.While nine of ten economic sectors recorded higher output, data shows manufacturing activity contracted in August. In contrast, retail trade maintained positive momentum, marking 18 consecutive months of growth.
Growth Trajectory:
The sustained growth aligns with national treasury expectations of a slight economic pickup,projecting growth of 1.2% for 2025. On a year-on-year basis, third-quarter GDP grew by 2.1%, exceeding forecasts.
