South Africa's economy faces turbulence in months ahead after surging to 2-year high

SOUTH Africas economy gained momentum in the second quarter of 2025 as it delivered its strongest growth in two years, largely driven by strong production side, household consumption and softer imports. Data from Statistics South Africa (Stats SA) on Tuesday showed that real gross domestic product (GDP) expanded by 0.8% between April and June following a marginal increase of 0.1% in the first quarter.

- SIPHELELE DLUDLA

Stats SA’s chief director for national accounts, Dr Bokang Vumbukani-Lepolesa, said eight out of 10 industries registered growth, with manufacturing contributing the most, followed by mining and trade.

Vumbukani-Lepolesa said the agriculture, forestry, and fishing sector saw a 2.5% rise during the period, thanks to stronger activity in both horticulture and animal products.

“After two consecutive quarters of decline, manufacturing and mining turned positive. Manufacturing production expanded by 1.8%, driven mainly by the automotive and petroleum, chemicals, rubber, and plastics divisions,’ she said. “Mining output grew by 3.7%, the fastest pace since the first quarter of 2021. Platinum group metals, gold and chromium ore were the main positive contributors.”