South Africa’s economy grows 0.8% in second quarter

PRETORIA — 10 September 2025

South Africa’s economy expanded 0.8% in Q2 2025, accelerating from 0.1% growth in the first quarter according to official data. Stats SA reported manufacturing, mining, and trade industries led the recovery as domestic spending strengthened.

Eight sectors grew with manufacturing rebounding 1.8%, ending two consecutive declines. Growth in this sector was fueled especially by automotive, petroleum, chemical, rubber, and plastics production (Stats SA).

Mering surged 3.7%—its strongest quarterly rise since early 2021—driven by increased output of platinum group metals, gold, and chromium ore (Stats SA). Trade-related activities also climbed 1.7% amid higher retail sales and hospitality demand.

Agriculture maintained momentum with 2.5% growth, supported by horticulture and animal products. However, construction contracted for the third straight quarter due to declining building activity (Stats SA).

Household spending increased 0.8%, marking five consecutive quarterly rises. Consumers spent notably more on insurance services, restaurants, hotels, and clothing—but reduced expenditure on alcohol, tobacco, and utilities (Stats SA).

Contributing further to growth, businesses added R16.6 billion worth of inventory in mining, transport and manufacturing after prolonged reductions. Six of 10 spending categories recorded growth last quarter.

Both imports and exports declined, falling 2.1% and 1.2% respectively. Imports fell in chemicals, machinery and mineral products, while reduced shipments of base metals and vegetables drove the export drop (Stats SA).

While key industries show resilience, economists say persistent weakness in construction and logistics requires monitoring as global commodity shifts and local confidence influence second-half prospects.