Statistics South Africa says the economy grew by 0,4 percent between October and December.
This growth continues the country's GDP expansion trend, following positive performance in all other quarters through 2025.
The national agency says five out of 10 industries have registered growth on the production side of the economy.
Finance, trade and services drive economic growth
Chief Director Bokang Vumbukani-Lepolesa says the finance, trade and personal services sectors were the main contributors to the overall increase in economic activity.
“The finance, real estate and business services industry grew by 1,4%, contributing 0,3 percentage points. Growth in economic activity was recorded for other business services; financial intermediation, insurance and pension funding; supporting activities; and real estate activities.
“The trade, catering and accommodation industry grew by 0,9%, contributing 0,1 percentage point. Growth in economic activity was recorded for wholesale trade, motor trade, retail trade, food and beverages and accommodation. The personal services industry grew by 0,4%, contributing 0,1 percentage point. Growth in economic activity was recorded for community services and other producers.”
“Agriculture, forestry and fishing industry increased by 0,4%. This was mainly due to the increase in economic activity reported for sector crops and horticultural products.
The manufacturing industry declined by 0,6 percent
“The manufacturing industry contracted by 0,6%, with a contribution of -0,1 percent. Eight out of ten manufacturing divisions recorded negative growth rates. The largest negative contributions were recorded for motor vehicles, parts and accessories and other transportation equipment; lumber and wood products, paper, publishing and printing; and food and beverages divisions.''
Also read: Four in 10 employees gamble to cover expenses amid rising financial stress
On the expenditure side of the economy, real GDP grew by 0.3 percent in the fourth quarter, slightly slower than the 0.4 percent recorded in the previous quarter.
Household final consumption expenditure increased by 1.2 percent, contributing 0.8 percentage points to overall growth.
The largest increases were recorded in spending on transport, clothing and footwear, restaurants and hotels, entertainment and culture, furnishings and home appliances, communications and health.
government spending
Government consumption expenditure increased by 0.5 percent, mainly due to higher spending on goods and services and employee compensation.
Gross fixed capital formation grew by 1.3 per cent during the quarter, supported by investment in machinery and equipment, construction works and other assets.
However, net exports impacted growth and contributed negatively to the economy. Exports of goods and services declined by 0.6 percent, while imports rose by 0.5 percent due to lower trade in vehicles, vegetable products and prepared foods.
For the full year, South Africa's economy is projected to grow 1.1 percent in 2025, an improvement from the 0.5 percent growth recorded in 2024.
“Annual growth in real GDP was mainly driven by higher economic activity in finance, real estate and business services, agriculture, forestry and fishing, and trade, catering and accommodation,” Vumbukani-Lepolesa said.
Despite overall growth, key sectors including manufacturing, power, gas and water and construction recorded negative growth during the year.
Find us on social media
Follow ECR Newswatch WhatsApp Channel Here