South Africa’s gross domestic product (GDP) increased by 0,5% in the third quarter of 2025, following a 0,9% rise in the second quarter, Statistics South Africa reported. Growth was supported by mining, trade, government services, and household spending, while electricity, gas, and water production declined.
By sector, trade, catering, and accommodation expanded by 1,0%, with wholesale and retail trade, motor trade, accommodation, and food and beverage services contributing to growth. Mining and quarrying rose by 2,3%, mainly due to platinum group metals, manganese ore, and coal. Finance, real estate, and business services increased by 0,3%, while general government services grew by 0,7% due to higher employment in national and provincial government and extra-budgetary institutions.
Transport, storage, and communication rose by 0,5%, led by air transport, transport support, and communication services. Manufacturing grew by 0,3%, mainly in the food and beverages division and furniture and other manufacturing divisions. Agriculture, forestry, and fishing increased by 1,1%, while the electricity, gas, and water sector fell by 2,5%, subtracting 0,1 percentage points from GDP.
On the expenditure side, household final consumption rose by 0,7%, contributing 0,5 percentage points to growth. Key drivers included transport (1,6%), food and non-alcoholic beverages (0,9%), housing, water, electricity, gas, and other fuels (0,9%), and furnishings and household maintenance (2,0%). Government consumption grew by 0,3%, driven by higher compensation of employees.
Gross fixed capital formation increased by 1,6%, with transport equipment (6,6%), other assets (3,8%), transfer costs (9,9%), non-residential buildings (2,7%), and machinery and equipment (0,4%) being the main contributors. Inventories rose by R25,7 billion, mainly in trade, catering and accommodation, manufacturing, and electricity, gas, and water.
Net exports had a negative impact, subtracting 0,4 percentage points from GDP. Exports increased by 0,7%, led by vegetable and mineral products, while imports rose by 2,2%, influenced by machinery and electrical equipment, mineral products, textiles, and animal and vegetable fats and oils.
Dr Bokang Vumbukani-Lepolesa, Chief Director for National Accounts at Statistics South Africa, said, “The modest growth of 0,5% in the third quarter reflects continued activity in mining, trade, government services, and household consumption, while the decline in electricity, gas, and water production and increased imports tempered overall expansion.”
Statistics South Africa also noted that the National Accounts estimates are periodically benchmarked and rebased. The last rebasing, published in August 2021, updated the base year from 2010 to 2015. A new rebasing to 2022, incorporating updated datasets, is underway, with results expected in 2026.
The report shows that while South Africa’s economy continues to grow moderately, challenges in electricity and water supply and higher imports remain constraints on stronger expansion.
