Mining revival and consumer spending lift SA’s growth

SOUTH Africa’s economy surprised on the upside in the second quarter of 2025, with gross domestic product (GDP) expanding by 0.8% quarter on quarter and 0.6% year on year, buoyed by a rebound in mining and increased consumer spending.

- ASHLEY LECHMAN

Abigail Moyo, spokesperson for the trade union UASA, described the performance as a welcome development.

“The GDP growth in the second quarter of 2025 is promising news for the South African economy.

This growth was supported by a strong recovery in the mining sector and increased consumer spending,” she said.

Moyo added that while the outcome provided hope for lower inflation and reduced debt burdens, growth remained too low to tackle unemployment.

“We cannot ignore that current growth levels are insufficient to offset population growth and rising unemployment,” she said.

Thanda Sithole, senior economist at FNB, said the outcome exceeded market expectations.

“On a seasonally adjusted basis, the economy expanded by 0.8% quarter on quarter, sustaining momentum after the 0.1% rise in the previous quarter.

This was above both our forecast and the Reuters consensus of 0.5%,” Sithole said.