South Africa’s economy grew faster than expected in the second quarter of 2025, with Gross Domestic Product (GDP) expanding by 0.8% compared to a marginal 0.1% in Q1, according to Statistics South Africa.
The outcome beat forecasts from 13 analysts polled by Bloomberg last month, who had projected a 0.4% growth. It also marks the third straight quarter of expansion and the strongest performance since Q2 2023.
The recovery was underpinned by a rebound in manufacturing and mining, both of which returned to growth after two consecutive quarters of contraction, alongside an uptick in consumer activity.
“Manufacturing, mining & quarrying; and trade, catering & accommodation were the most significant positive contributors in the second quarter, each adding 0.2 of a percentage point to GDP growth,” the statistics agency stated in its latest GDP report released on Tuesday.
Mining outpaces agriculture, manufacturing
Mining emerged as the fastest growing sector in Africa’s most industrialised economy, surging 3.7% — the highest since Q1 2021 — on the back of stronger output in platinum group metals, gold and chromium ore.
Agriculture followed with a 2.5% increase, its third straight quarterly gain, supported by higher activity in horticulture and animal products. Manufacturing also found firmer ground, expanding 1.8% as the automotive, petroleum, chemicals, rubber and plastics divisions posted notable growth.
Consumer-facing sectors added further momentum. Trade grew by 1.7%, its best showing since early 2022, lifted by retail, motor trade, accommodation and food & beverages, though wholesale trade slipped back into contraction.
The uptick, however, was not broad-based.“The construction industry witnessed its third consecutive decline, pulled lower by weaker economic activity related to residential and non-residential buildings,” the report read.
“There was a rise in construction works, but this was not enough to lift the industry into positive territory,” it added.
Transport, storage and communication also declined, dragged by land transport and support services. Overall, eight out of 10 sectors expanded during the three-month period.
On the demand side, household consumption and imports drove growth, while weaker investment and exports weighed on performance.
US tariffs threaten to slow momentum
The recovery comes against the backdrop of steep US tariffs that threaten to slow momentum in the months ahead.
South African exports of vehicles, steel, citrus fruit and other products now face a 30% import duty at US ports, the highest rate imposed on any sub-Saharan African nation.
The penalties are expected to weigh heavily on key sectors such as automotive and agriculture, curbing demand from the country’s second-largest trading partner and dampening the outlook for growth in the coming quarters.
