South Africa’s GDP grows 0.5% in Q3 2025

South Africa’s gross domestic product (GDP) increased by 0,5% in the third quarter of 2025, following a growth of 0,9% in the second quarter, according to Statistics South Africa. The institution released the stats on Tuesday. The growth was driven by moderate expansions across multiple industries, despite declines in electricity, gas, and water production.

By sector, the trade, catering, and accommodation industry grew by 1,0%, contributing 0,1 percentage points to overall GDP. Increases were reported in wholesale and retail trade, motor trade, accommodation, and food and beverage services.

The mining and quarrying sector recorded growth of 2,3%, also contributing 0,1 percentage points, with platinum group metals, manganese ore, and coal being the main positive drivers.

The finance, real estate, and business services industry rose by 0,3%, supported by growth in real estate activities and other business services, contributing 0,1 percentage points to GDP. General government services increased by 0,7% as employment rose in national and provincial government and extra-budgetary institutions.

The personal services sector grew by 0,3%, mainly in community services and other producers, while transport, storage, and communication expanded by 0,5%, reflecting higher activity in air transport, transport support, and communication services.

Manufacturing grew by 0,3%, with the largest contributions coming from the food and beverages division and the furniture and other manufacturing division. Agriculture, forestry, and fishing rose by 1,1%, driven by field crops, horticulture, and animal products. The electricity, gas, and water sector declined by 2,5%, subtracting 0,1 percentage points from overall GDP due to decreased electricity production and consumption.

From an expenditure perspective, household final consumption expenditure rose by 0,7%, contributing 0,5 percentage points to GDP growth. The main drivers were transport (1,6% increase), food and non-alcoholic beverages (0,9%), housing, water, electricity, gas, and other fuels (0,9%), and furnishings, household equipment, and maintenance (2,0%). Expenditures on clothing and footwear and the “other” category contributed negatively.

Final consumption by general government increased by 0,3%, adding 0,1 percentage points to GDP growth, primarily due to higher compensation of employees. Gross fixed capital formation grew by 1,6%, contributing 0,2 percentage points. Major contributors included transport equipment (6,6% growth), other assets (3,8%), transfer costs (9,9%), non-residential buildings (2,7%), and machinery and equipment (0,4%). A R25,7 billion buildup in inventories was recorded, largely in trade, catering and accommodation, manufacturing, and electricity, gas, and water.

Net exports had a negative impact on GDP, subtracting 0,4 percentage points. Exports of goods and services increased by 0,7%, primarily in vegetable and mineral products, while imports rose by 2,2%, largely due to machinery and electrical equipment, mineral products, textiles, and animal and vegetable fats and oils.

Dr Bokang Vumbukani-Lepolesa, Chief Director for National Accounts at Statistics South Africa, said, “The modest growth of 0,5% in the third quarter reflects continued activity in mining, trade, government services, and household consumption, while the decline in electricity, gas, and water production and increased imports tempered overall expansion.”

Statistics South Africa noted that the National Accounts estimates are periodically benchmarked and rebased. The last rebasing exercise, published in August 2021, updated the base year from 2010 to 2015. A new rebasing to 2022, incorporating periodic datasets, is underway and results are expected in 2026.

Overall, South Africa’s economy showed moderate growth in the third quarter, supported by household spending, mining, trade, and government activity, while electricity and water constraints and higher imports limited stronger expansion.