South Africa’s GDP rises 0.8% in Q2 as manufacturing, mining rebound

Economy

Cape Town – South Africa’s economy recorded stronger growth in the second quarter of 2025, expanding by 0.8% following a marginal 0.1% increase in the first quarter, Statistics South Africa (Stats SA) said on Monday.

The growth was driven by gains in the manufacturing, mining, and trade sectors, while household spending also provided a boost on the expenditure side of the economy.

“Manufacturing, mining and trade were the most significant positive contributors in the second quarter, each adding 0.2 of a percentage point to GDP growth,” Stats SA said in a statement.

After two quarters of contraction, both manufacturing and mining rebounded. Manufacturing grew by 1.8%, fuelled largely by automotive and petroleum, chemicals, rubber and plastics production. Mining surged by 3.7% — its fastest pace since early 2021 — supported by stronger output of platinum group metals, gold, and chromium ore.

The trade, catering and accommodation industry also showed resilience, climbing 1.7% to mark its best performance since the first quarter of 2022. Retail trade, motor trade, accommodation, and food and beverages all recorded gains, though wholesale trade slipped.

Agriculture sustained its upward trajectory, rising 2.5% after a revised 18.6% jump in the first quarter. “This was primarily due to increased economic activity reported for horticulture and animal products,” Stats SA noted.

Not all industries fared well. Construction posted its third consecutive decline, weighed down by weaker residential and non-residential building activity, while transport, storage and communication contracted due to reduced land transport and support services.

On the demand side, household consumption rose 0.8% in the quarter, marking its fifth consecutive increase. Stats SA said the strongest spending was seen in insurance services, as well as restaurants, hotels, clothing and footwear. However, households cut back on alcohol, tobacco, and utilities.

“Household consumption and imports were the most significant positive contributors to growth on the expenditure side of the economy,” the agency said. Imports fell by 2.1%, largely due to declines in chemical products, machinery and electrical equipment, mineral products, and vegetables.

Exports also weakened, with sharp drops in base metals, vegetable products, and vehicles excluding large aircraft.

Meanwhile, inventories rose by R16.6 billion, reversing five consecutive quarters of drawdowns, with mining, transport, and manufacturing contributing most to the build-up.

The latest data reflect a fragile but broad-based recovery, with Stats SA stressing that momentum remains uneven across sectors.

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