Image Source: The Citizen
Local – The economy grew by 0,5% in the third quarter of 2025, following a 0,9% increase in the second quarter, marking the third consecutive quarter of growth. The government welcomed the latest results, saying the continued expansion pointed to steady economic momentum.
“The continued improvement reflects the resilience of the South African economy and the impact of ongoing structural reforms to support inclusive and sustained growth,” the government said.
Broad-Based Industry Growth Drives Economic Momentum
Several key industries recorded positive performance over the period, led by trade, catering and accommodation, supported by increased activity across wholesale and retail trade, motor trade, and tourism-related services.
Mining and quarrying also strengthened on the back of higher output of platinum group metals, manganese ore and coal.
At the same time, finance, real estate and business services posted moderate growth, driven by real estate activity and other business services.
“The trade, catering and accommodation industry increased by 1,0%, contributing 0,1 of a percentage point to GDP growth,” Stats SA said.
General government services grew by 0,7% alongside rising employment, while personal services increased by 0,3% and transport, storage and communication rose by 0,5%.
Manufacturing expanded by 0,3% and agriculture by 1,1%, but electricity, gas and water declined by 2,5%.
Household Spending and Investment Lift Expenditure
On the expenditure side, household spending continued to support growth in the quarter, with positive increases recorded across durable goods, non-durable goods, and services, despite persistent cost-of-living pressures.
Transport, food and non-alcoholic beverages, housing, water, and household furnishings remained the main drivers of consumption, while clothing and footwear continued to weigh on overall household spending.
“Household final consumption expenditure increased by 0,7%, contributing 0,5 of a percentage point to the total growth,” Stats SA said.
Final consumption expenditure by the general government increased by 0,3% through higher compensation of employees, while gross fixed capital formation rose by 1,6% due to investment in transport equipment, buildings and machinery.
“There was a R25,7 billion buildup of inventories (seasonally adjusted and annualised value) … Net exports contributed negatively (-0,4 of a percentage point) to expenditure on GDP,” Stats SA said.
