SA economy on a roll: fourth quarter of growth

Mining

Cape Town – South Africa’s economy continued its gradual recovery in the third quarter of 2025, expanding by 0.5% between July and September, Statistics South Africa (Stats SA) announced on Tuesday.

This marks the fourth straight quarter of growth, following a revised 0.9% rise in the second quarter.

“This is now the fourth consecutive quarter of economic expansion,” said Joe de Beer, Deputy Director-General for economic statistics at Stats SA.

“We value real GDP at R1.187 trillion in constant 2015 prices, which is comparable to the levels we had pre-Covid.”

Stats SA reported that nine of the ten major industries on the production side recorded growth, with mining, agriculture, and trade leading the improvement.

Mining posted the strongest performance, rising by 2.3%, driven by higher output of platinum group metals, manganese ore, coal, chromium ore and copper. The sector’s gains came despite declines in iron ore, diamonds, nickel and gold.

Agriculture, forestry and fishing recorded its fourth consecutive increase, growing by 1.1% on the back of stronger production of field crops, horticulture and animal products.

The trade, catering and accommodation industry also marked its fourth quarter of expansion, with improvements in wholesale and retail trade, motor trade, accommodation and food and beverages.

General government activity increased as well, supported by higher employment across national and provincial departments and extra-budgetary institutions.

Transport, storage and communication rose by 0.5%, boosted by gains in air transport, communication services and transport support services. Construction edged back into positive territory after three quarters of decline, registering a modest 0.1% increase.

The only sector to contract was electricity, gas and water, which fell by 2.5% due to lower electricity production and water consumption.

On the demand side, the economy was supported by stronger household spending, fixed investment, exports and government consumption.

Household consumption rose for the sixth consecutive quarter, increasing by 0.7%. Transport spending was the biggest contributor, buoyed by higher new vehicle sales. Spending on clothing, footwear, and miscellaneous goods and services declined.

Gross fixed capital formation bounced back after three quarters of contraction, rising by 1.6%. Stats SA attributed the increase mainly to “increased investment in transport equipment,” with additional support from ICT equipment and software.

Exports grew by 0.7%, boosted by vegetable and mineral products, while imports increased by 2.2% due to higher trade in machinery, electrical equipment, mineral products, textiles and vegetable oils.

With four consecutive quarters of growth recorded, Stats SA says the economy’s trajectory continues to show resilience. “Compared to the volatility during Covid, the economy has stabilised and is showing consistent, if moderate, expansion,” de Beer said.

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