• GDP expanded 0.8% in Q2 2025, after 0.1% growth in the previous quarter

• Manufacturing, mining, and trade drove growth, while construction contracted

• Government says results show resilience; IMF projects 1% growth for 2025

South Africa’s gross domestic product (GDP) grew by 0.8% in the second quarter of 2025, compared with 0.1% in the first quarter, driven by manufacturing, mining, and trade, according to Statistics South Africa (Stats SA) in a report released on September 9.

Manufacturing expanded 1.8%, adding 0.2 percentage point to overall GDP. Growth was recorded in seven of the sector’s ten divisions, including automotive, petroleum, chemicals, rubber, and plastics.

The trade, catering, and accommodation sector rose 1.7%, its best performance since the first quarter of 2022 (2.6%), also contributing 0.2 percentage point. Agriculture grew 2.5%. However, construction, transport, storage, and communications contracted during the quarter.

The government said the results demonstrate the resilience of the South African economy and reflect the positive impact of ongoing initiatives to stimulate growth, support local industries, and create jobs.

The recovery comes amid a difficult global context, including new tariffs imposed on South African goods by the Trump administration. Domestically, persistent challenges such as the energy crisis and disruptions in rail and port operations have weighed on growth, which was limited to 0.6% in 2024. Real per capita income has also fallen, while unemployment and poverty remain widespread.

To address these challenges, the government is advancing reforms, including private sector participation in electricity generation and freight rail and port operations. It is also working to simplify digital communications regulation and water licensing procedures.

In its latest country report, the International Monetary Fund (IMF) projected South Africa’s economy will grow 1% in 2025, up from the previous year.