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The South African economy recorded its fifth consecutive quarter of growth, expanding by 0.4% in the fourth quarter of 2025.
Statistics South Africa says the finance, trade and personal services sectors have driven much of the growth on the supply side of the economy.
Statistics SA says increases in household spending, gross fixed capital formation and government consumption lifted the expenditure, or demand, side of the economy.
It said the positive performance in the fourth quarter helped boost annual GDP growth by 1.1% in 2025.
Stats SA says this is the highest annual growth rate since 2022, when GDP grew by 2.1%.
Five out of ten industries recorded growth in the fourth quarter.
Finance, real estate and business services had the most significant positive impact on the supply side of the economy.
Industry grew by 1.4%, adding 0.3 percentage points to overall GDP growth.
This was mainly due to growth in financial intermediation, insurance and pension funding, ancillary activities, real estate activities and other business services.
Stats SA says business, catering and accommodation as well as personal services also made notable positive contributions.
Trade grew for the fifth consecutive quarter, supported by strong results from wholesale trade, retail trade, motor trade, accommodation and food and beverage services.
The growth in community services and other producers gave a high impetus to the personal services industry.
The statistical agency says provincial governments and municipalities hired more civil servants in the fourth quarter, leading to a 0.4% increase in general government services.
The agriculture industry recorded its fifth consecutive quarter of growth, supported by growth in field crops and horticultural products.
However, not all sectors performed positively in the fourth quarter.
Manufacturing was the biggest negative contributor, declining 0.6% and slowing GDP growth by 0.1 percentage points.
The greatest downward pressure came from the automotive divisions, lumber, paper and publishing, and food and beverage manufacturing.
Mining output also disappointed after two quarters of growth.
Coal, platinum group metals, gold and diamonds all declined in the fourth quarter.
On the positive side, production of manganese ore, chromium ore, iron ore, nickel and copper increased, but this was not enough to keep the industry in positive territory.
Electricity, gas and water recorded a second consecutive decline of 2.2%, following a revised 2.6% contraction in the third quarter.
On the demand side of the economy, households, investment and government spending all contributed positively in the fourth quarter.
Household consumption expenditure increased by 1.2% for the seventh consecutive quarter.
Consumers spent particularly more on miscellaneous goods and services (which includes insurance), clothing and shoes, restaurants and hotels, and furnishings, home appliances, and maintenance.
However, alcoholic beverages, tobacco and narcotics were less of a priority, with spending in this category declining by 0.2%.
According to Statistics South Africa, after a disappointing performance in 2023 and 2024, the agriculture sector made a strong comeback with growth of 17.4% in 2025.