Enoch Godongwana in parliament. (Photo: GCIS)
South Africa’s economy grew by just 1.1% in 2025, with the country’s GDP expanding by 0.4% in the fourth quarter, according to the latest data released by Statistics South Africa (StatsSA).
The government says it welcomes these figures and that they indicate continued resilience in the economy.
According to the government, the fourth quarter is “the fifth consecutive quarter of economic growth”, showing that the economy continues to expand despite a “challenging environment globally”.
On the production side, growth was mainly driven by service-related sectors. This includes finance, property and business services, as well as trade, catering and accommodation.
Positive contributions were also recorded from agriculture and the public service in general, says Nomonde Mnukwa, acting government spokesperson.
On the expenditure side, the economic expansion was supported by increased household spending, growth in gross fixed capital formation and higher government consumption. According to Mnukwa, these factors collectively contributed to the positive quarterly outcome.
Archive photo for illustration purposes only. (Photo: LUCA SOLA / AFP)
The fourth quarter’s performance also contributed to annual GDP growth for 2025 coming in at 1.1%.
According to the government, this is “the highest annual growth rate since 2022, when the economy expanded by 2.1%.”
Mnukwa says that reforms implemented by the government and the business community play a role in the continued growth.
According to Mnukwa, the government will continue to work with various actors “to accelerate inclusive growth, encourage investment and build a resilient economy that promotes sustainable development and job creation”.