South Africa’s economy recorded modest growth of 0.4% in the fourth quarter of 2025, according to the latest GDP figures released by Statistics South Africa. This was announced by Statistician-General Risenga Maluleke on Tuesday morning.
The growth follows 0.3% expansion in the third quarter of 2025, signalling slow but steady economic activity.
The finance, real estate and business services sector was the biggest driver, growing 1.4% and contributing the largest share to the quarterly increase.
The trade, catering and accommodation industry also expanded 0.9%, while personal services, government services and agriculture each recorded smaller gains.
Manufacturing dips
However, manufacturing declined by 0.6%, with eight of the ten divisions recording negative growth. The largest drops were in motor vehicles and transport equipment, wood and paper products, and food and beverages.
On the expenditure side, real GDP increased by 0.3%, supported mainly by household spending, which rose 1.2%. Consumers spent more on transport, clothing and footwear, restaurants and hotels, recreation and culture, and household goods.
Government spending grew by 0.5%, while investment in fixed capital increased by 1.3%, reflecting gains in machinery, equipment and construction works.
Exports drag down economy
Despite these improvements, net exports weighed on growth, with exports declining 0.6% while imports rose 0.5%.
There was also a R6.2-billion drawdown in inventories, largely in the trade, manufacturing and mining sectors.
For the full year, South Africa’s economy expanded by 1.1% in 2025, an improvement from 0.5% growth recorded in 2024.
The annual increase was mainly driven by finance and business services, agriculture, and trade, while manufacturing, construction and electricity recorded contractions.
Statistics South Africa also confirmed it is rebasing the national accounts to a 2022 base year, with updated estimates expected later in 2026.
