BER warns GDP rebound masks deeper economic fragilities

Bureau says modest rebound in economic growth belies worsening operating conditions

- YOGASHEN PILLAY

THE Bureau for Economic Research (BER) has cautioned that South Africa's modest rebound in economic growth belies the severe pressures still confronting businesses, warning that fragile private sector investment and worsening operating conditions continue to threaten the country’s growth outlook.

This follows Statistics South Africa’s release last week showing that gross domestic product (GDP) expanded by 0.8% in the second quarter of 2025, lifting the probability of full-year growth exceeding 1%.

Lisette IJssel de Schepper, chief economist at the BER, acknowledged the unexpectedly positive GDP outcome but warned that such gains do not reflect the realities on the ground.

De Schepper said the BER’s latest business survey, which attracted more than 300 voluntary comments from respondents, indicated widespread dissatisfaction with the economic environment.

“In the non-compulsory question, we prompt them to think about negative and positive developments. Unfortunately, the recent feedback is mostly negative and provides a sobering reality check,” she said.