South Africa's Economy Grows 0.5% in Q3 2025, Marking Fourth Consecutive Quarter of Expansion
PRETORIA, 2 December 2025. South Africa's gross domestic product expanded by 0.5% in the third quarter of 2025 (July-September), according to data released by Statistics South Africa on Tuesday, marking the fourth consecutive quarterly increase in economic activity and providing evidence of a...
South Africa's Economy Grows 0.5% in Q3 2025, Marking Fourth Consecutive Quarter of Expansion
PRETORIA, 2 December 2025. South Africa's gross domestic product expanded by 0.5% in the third quarter of 2025 (July-September), according to data released by Statistics South Africa on Tuesday, marking the fourth consecutive quarterly increase in economic activity and providing evidence of a gradual recovery after years of near-stagnant growth.
Mining and quarrying led sectoral performance, growing 2.3% and driven by increases in platinum group metals, manganese ore, coal, and chromium output. Agriculture recorded its fourth straight quarterly gain, rising 1.1%, supported by field crops and animal products. Trade, catering and accommodation also expanded for the fourth consecutive quarter, with growth across wholesale, retail, and food-service subsectors. Manufacturing growth was more modest, while the electricity, gas, and water sector was the only major sector to contract, falling 2.5% due to lower electricity production, a decline that analysts attributed in part to the broader success of load-shedding reduction efforts displacing certain forms of measured production.
On the expenditure side, household consumption rose 0.7% for a sixth consecutive quarterly gain, partly supported by new vehicle sales. Gross fixed capital formation rebounded by 1.6% after three quarters of decline, a development the government described as encouraging evidence of renewed investment activity. Exports rose 0.5%.
The government welcomed the figures, with the presidency noting that the fourth consecutive quarter of expansion, combined with a reduction in unemployment and Eskom's improved energy supply, reflected the combined effect of structural reforms undertaken over the preceding 18 months. The National Treasury's 2025 Medium-Term Budget Policy Statement, presented on 12 November, had projected full-year 2025 growth of 1.2%, revised down from 1.4%.
South Africa's 2024 full-year GDP growth rate had been approximately 0.6%, constrained by persistent load shedding, logistics bottlenecks, and weak business confidence. The consecutive quarters of expansion in 2025 raised expectations that the economy could approach 1% annual growth for the full year.
Statistics South Africa uses a chain-volume measure to calculate quarterly GDP figures, with data seasonally adjusted and annualised where applicable in international comparisons.