South Africa’s GDP Grows 0.8% in Q2 2025, Mining and Agriculture Lead Slug

South Africa’s Economy Grows by 0.8% in Second Quarter of 2025

Pretoria – South Africa’s economy expanded by 0.8% in the second quarter of 2025, according to data released on Monday by Statistician-General Risenga Maluleke. The growth was driven by strong performances in mining, agriculture, and manufacturing, though challenges in transport and construction dragged the overall momentum.

Key Sector Contributions

• Mining surged by 3.7%, supported by positive output in platinum group metals, gold, and chromium.
• Agriculture grew 2.5%, largely due to horticulture and animal products.
• Manufacturing rose 1.8%, led by the automotive, petroleum, chemical, rubber, and plastics industries.
• Trade grew 1.7%, supported by retail, motor sales, accommodation, and food services.

On the other hand:

• Construction contracted 0.3%, weighed down by a decline in residential and non-residential building activity.
• Transport fell by 0.8%, mainly due to weaker land transport and support services.

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Broader Economic Picture

The primary sector (mining and agriculture) grew the fastest at 3.2%, followed by the secondary sector (manufacturing, utilities, construction) at 1.3%, and the tertiary sector (trade, finance, government services) at 0.5%.

Nominal GDP was estimated at R1.896 trillion in the quarter. Finance remained the largest contributor to the economy at 22%, followed by personal services, trade (14%), and manufacturing (13%). Agriculture, usually between 2–3% of GDP, rose to 5% this quarter.

Expenditure Side

Household final consumption rose by 0.8%, contributing 0.6 percentage points to overall growth. Restaurants and hotels recorded the highest growth at 4.8%, while clothing and footwear also performed strongly. However, alcohol, tobacco, housing, water, and electricity saw declines.

Government consumption expanded by 0.7%, contributing 0.1 percentage points, while investment slumped by 1.4%. Imports and exports also contracted by 2.1% and 3.2% respectively, largely due to weaker trade in metals, vehicles, and agricultural products.

READ: Mining and Manufacturing Boost South Africa’s GDP to 0.8% in Q2 | Inflation 2025

Unemployment Still High

Despite the modest GDP growth, unemployment remains a pressing challenge. During the same period, the unemployment rate increased by 0.3 percentage points, bringing the official rate to 33.2%.

Outlook

While the 0.8% growth marks progress, analysts warn it remains far below the levels required to reverse South Africa’s unemployment crisis and stimulate inclusive development. Sustained improvements in investment, energy supply, and trade competitiveness will be crucial for stronger growth in the coming quarters.