A disappointing outlook is loomimg for GDP growth

Despite a marked improvement for the agriculture sector in the first two quarters of 2025, Dr Koos Coetzee believes farmers are still facing challenging times ahead.

- Dr Koos Coetzee

The South African economy is struggling with structural problems and this will impact negatively on the agriculture sector. South Africa's gross domestic product (GDP) disappointed again in the second quarter of 2025 (see table). According to Statistics South Africa's (Stats SA) recently released GDP growth figures for the second quarter of 2025, the economy grew by 0,8% compared to the first quarter on an annualised basis.

WEAK ECONOMIC GROWTH TO CONTINUE INTO 2026

Using the more sensible year-on-year comparison, the economy only grew by 0,7% compared to the second quarter of 2024, and by 0,7% in the first half of 2025 in comparison to the first half of 2024.

GDP growth of below 1% per year was achieved in 2023 and 2024. Weak GDP growth of about 1% is expected for 2025.

Growth slowed down in all the sectors, with the exception of agriculture, the only sector that achieved significant growth in the first half of 2025 compared to 2024. It grew by 9,8% compared to the first half of 2024.