South Africa’s Economy Gains Momentum After Years of Weak Growth

JOHANNESBURG, Mar 12 – The national statistical agency Statistics South Africa reported South Africa’s economy expanded by 1.1 percent in 2025, the fastest pace of growth since 2022, This marked an improvement from the 0.5 percent expansion recorded in 2024, signaling modest gains after years of subdued performance

The annual increase was supported by broad improvements across key sectors. Agriculture, forestry and fishing was a standout performer, surging by around 17.4 percent, while the trade, catering and accommodation sector grew 2.3 percent. The finance, real estate and business services industry also expanded by 1.9 percent, together contributing significantly to overall output

On the production side, the economy recorded its fifth consecutive quarter of expansion, with gross domestic product rising 0.4 percent in the fourth quarter of 2025, up from a revised 0.3 percent in the prior quarter. Analysts noted that the stronger performance late in the year helped lift the full-year result

However, growth remained uneven. Several key industries contracted, including manufacturing, electricity, gas and water supply, and construction, underscoring persistent structural challenges within South Africa’s productive sectors

At the start of 2025, the National Treasury projected economic growth of approximately 1.6 percent for the year, while acknowledging downside risks linked to electricity supply, logistics inefficiencies, and weak global demand

The National Treasury expects growth to strengthen toward around 2 percent by 2028, conditional on sustained reform implementation, improved energy availability, and easing logistics bottlenecks. The Reserve Bank has echoed this view, stating that higher trend growth will depend less on cyclical recovery and more on structural improvements across electricity, transport, and network industries