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South Africa's Economy Grew by Just 1.1% in 2025 Amid Ongoing Challenges

Growth was mainly driven by services, household spending, and government consumption, with nominal GDP rising 4.6% to R7.68 trillion, Stats SA reported.

  • In 2025, Statistics South Africa's data shows South Africa's economy grew by 1.1%, with GDP expanding 0.4% in the fourth quarter.
  • On the production side, service sectors led expansion while household final consumption expenditure, gross fixed capital formation, and government consumption supported growth, the government said.
  • The manufacturing industry declined 0.6%, subtracting from growth alongside mining, electricity, construction and transport sectors; inventories and net exports also reduced growth while nominal GDP rose 4.6% to R7.68 trillion.
  • Stats SA announced that, due to methodological divergence, the production measure shows 1.1% growth while the expenditure measure indicates 1.4%, with rebased estimates due later in 2026.
  • Analyst growth forecasts range from 0.1% to 0.6% quarter-on-quarter, with production and expenditure first estimates at 0.4% and 0.3%; five industries with positive growth include finance, trade and personal services sectors.
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eNCA broke the news in on Tuesday, March 10, 2026.
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