Economy grows by 0.4% in fourth quarter of 2025
South Africa’s economy recorded modest growth in the final quarter of 2025, with Gross Domestic Product (GDP) increasing by 0.4 percent between October and December.
According to data released by Statistics South Africa, the increase follows a 0.3 percent rise recorded in the third quarter of the year.
Chief Director for National Accounts at Statistics South Africa Bokang Vumbukani-Lepolesa says several industries contributed to the country’s economic growth during the period.
"The finance, real estate, and business services industry increased by 1.4 percent, contributing 0.3 of a percentage point to the overall growth."
The sector recorded increased activity in other business services, financial intermediation, insurance and pension funding, auxiliary activities, and real estate services.
The trade, catering, and accommodation industry also contributed to the expansion, growing by 0.9 percent and adding 0.1 of a percentage point to GDP growth.
"Trade recorded increased economic activities in wholesale trade, motor trade, retail trade, food and beverages, as well as accommodation," Vumbukani-Lepolesa explained.
The personal services sector grew by 0.4 percent, while general government services also recorded a 0.4 percent increase, mainly due to higher employment in provincial and local government.
Agriculture, forestry, and fishing also expanded by 0.4 percent, largely driven by improved activity in field crops and horticulture.
However, some industries weighed on overall economic performance.
"The manufacturing industry decreased by 0.6 percent, with eight of the ten manufacturing divisions reporting negative growth rates," Vumbukani-Lepolesa said.
She added that the biggest declines were recorded in the motor vehicles and transport equipment division, as well as in wood and paper products, publishing and printing, and the food and beverages sector.
On the expenditure side of the economy, real GDP increased by 0.3 percent in the fourth quarter, slightly slower than the 0.4 percent recorded in the previous quarter.
Household final consumption expenditure rose by 1.2 percent, contributing 0.8 of a percentage point to overall growth.
The biggest spending increases were recorded in transport, clothing and footwear, restaurants and hotels, recreation and culture, furnishings and household equipment, communication, and health.
Government consumption expenditure increased by 0.5 percent, mainly due to higher spending on goods and services and employee compensation.
Gross fixed capital formation grew by 1.3 percent during the quarter, supported by investment in machinery and equipment, construction works, and other assets.
However, net exports weighed on growth, contributing negatively to the economy. Exports of goods and services declined by 0.6 percent, largely due to lower trade in vehicles, vegetable products, and prepared foodstuffs, while imports increased by 0.5 percent.
For the year as a whole, South Africa’s economy grew by 1.1 percent in 2025, an improvement from the 0.5 percent growth recorded in 2024.
"The annual increase in real GDP was primarily led by higher economic activities in finance, real estate and business services, agriculture, forestry and fishing, and trade, catering and accommodation," Vumbukani-Lepolesa said.
Despite the overall growth, key sectors including manufacturing, electricity, gas and water, and construction recorded negative growth during the year.
ALSO READ
