SA economy posts third quarter of growth as GDP rises 0.5% in Q3 of 2025

GCIS said the figures demonstrate that, despite ongoing challenges such as high unemployment, electricity constraints and global market volatility, South Africa’s economy continues to stabilise.

Government has welcomed the latest Gross Domestic Product (GDP) figures released by Statistics South Africa (Stats SA), confirming that the economy grew by 0.5% in the third quarter of 2025. This marks the third consecutive quarter of positive growth, following a 0.9% expansion in the second quarter and a steady upward trajectory since the start of the year.

According to the Government Communication and Information System (GCIS), the results reflect the resilience of the South African economy, supported by structural reforms aimed at stabilising key sectors, boosting investor confidence and promoting inclusive growth.

Strong Performance Across Key Sectors

Several industries contributed to the latest economic uptick:

• Trade, catering and accommodation (up 1.0%) Growth in this sector was driven by stronger retail and wholesale activity, a rebound in tourism, and improved performance in food and accommodation services. Increased consumer spending and higher domestic travel numbers supported the recovery.

• Mining (up 2.3%) Mining registered the strongest growth, fuelled by higher production of platinum group metals (PGMs), manganese ore and coal. Improved global demand and more stable energy supply contributed to better output.

• Finance, real estate and business services (up 0.3%) The sector continued to show steady expansion despite global economic uncertainty, reflecting resilience in banking, insurance and professional services.

• General government services (up 0.7%) This increase was linked to improvements in public sector administration and service delivery initiatives.

• Manufacturing (up 0.3%) Although modest, the sector’s growth shows gradual recovery supported by improved factory output in food products, chemicals and machinery.

• Agriculture, forestry and fishing (up 1.1%) Better crop yields, stronger horticulture output and improved animal product sales contributed to the sector’s solid performance, following weather-related disruptions earlier in the year.

Economy Showing Signs of Gradual Recovery

GCIS said the figures demonstrate that, despite ongoing challenges such as high unemployment, electricity constraints and global market volatility, South Africa’s economy continues to stabilise.

“The GDP results show that while challenges remain, the economy is on a path of gradual recovery. Government will continue implementing measures to support growth, investment and job creation,” GCIS said.

Government’s Continued Reform Agenda

Officials highlighted several ongoing interventions supporting economic momentum:

• Accelerating the implementation of the Energy Action Plan to secure electricity supply

• Expanding logistics reforms to improve rail and port operations

• Increasing support for small businesses and township enterprises

• Strengthening localisation and industrialisation programmes

• Advancing reforms under Operation Vulindlela to reduce regulatory barriers

Economists note that maintaining growth momentum into 2026 will require sustained policy certainty, infrastructure upgrades and stronger private sector participation.

With three quarters of consecutive growth, South Africa enters the final quarter of 2025 with renewed optimism and a foundation for deeper recovery.