• South Africa’s economy grew 1.1% in 2025, up from 0.5%

• Fourth-quarter GDP expanded 0.4%, fifth consecutive quarterly growth

• Services, trade and agriculture sectors drove annual expansion

South Africa's economy grew 1.1% in 2025, Statistics South Africa reported on Tuesday, up from growth of 0.5% in 2024.

The South African government welcomed the figures, saying they show economic resilience despite a challenging global environment. It said the performance reflects the impact of structural reforms undertaken in recent years, along with stronger cooperation between government and the private sector to support economic activity.

Growth drivers and quarterly performance

In the fourth quarter of 2025, the economy expanded 0.4%, marking the fifth consecutive quarter of growth. For the full year, growth was driven mainly by the services sector, including finance, real estate and business services, as well as trade, hospitality and catering. Agriculture and public utilities also contributed positively.

On the demand side, growth was supported by higher household spending, increased government expenditure and stronger investment, all of which contributed to the positive fourth-quarter outcome.

The 2025 result marks South Africa's strongest annual growth since 2022, when the economy expanded 2.1%. However, it fell short of the National Treasury's initial forecast of around 1.4% GDP growth for the year.

The government is targeting economic growth of 2% by 2028. To support that goal, 2.67 trillion rand ($163.6 billion) has been budgeted for the 2026-2027 fiscal year. Authorities plan to rely on three main priorities to reach that target: increased infrastructure investment, continued economic reforms and prudent public financial management.

Carelle Yourann