South Africa’s economy grows 0.4% in Q4 2025
South Africa’s economy grew 0.4% in Q4 2025, extending its expansion streak, with growth being driven by finance, trade and services, while manufacturing declined.
Statistics South Africa says the economy grew by 0,4 per cent between October and December.
The growth continues the country’s Gross Domestic Product expansion trend, following positive performance in all other quarters of 2025.
The national agency says five of the 10 industries recorded growth on the production side of the economy.
Finance, Trade and Services drive economic growth
Chief Director Bokang Vumbukani-Lepolesa says the finance, trade and personal services sectors were the main contributors to the overall increase in economic activity.
"The finance, real estate and business services industry increased by 1,4%, contributing 0,3 of a percentage point. Increased economic activities were reported for other business services; financial intermediation, insurance and pension funding; auxiliary activities; and real estate activities.
"The trade, catering and accommodation industry increased by 0,9%, contributing 0,1 of a percentage point. Increased economic activities were reported for wholesale trade, motor trade, retail trade, food and beverages and accommodation. The personal services industry increased by 0,4%, contributing 0,1 of a percentage point. Increased economic activities were reported for community services and other producers."
"The agriculture, forestry and fishing industry increased by 0,4%. This was primarily due to increased economic activities reported for field crops and horticulture products.
Manufacturing industry declined by 0,6 per cent
"The manufacturing industry decreased by 0,6%, contributing -0,1 of a percentage point. Eight of the ten manufacturing divisions reported negative growth rates. The largest negative contributions were reported for the motor vehicles, parts and accessories and other transport equipment; wood and wood products, paper, publishing and printing; and food and beverages divisions."
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On the expenditure side of the economy, real GDP increased by 0,3 per cent in the fourth quarter, slightly slower than the 0,4 per cent recorded in the previous quarter.
Household final consumption expenditure rose by 1,2 per cent, contributing 0.8 of a percentage point to overall growth.
The biggest spending increases were recorded in transport, clothing and footwear, restaurants and hotels, recreation and culture, furnishings and household equipment, communication, and health.
Government expenditure
Government consumption expenditure increased by 0,5 per cent, mainly due to higher spending on goods and services and employee compensation.
Gross fixed capital formation grew by 1.3 per cent during the quarter, supported by investment in machinery and equipment, construction works, and other assets.
However, net exports weighed on growth, contributing negatively to the economy. Exports of goods and services declined by 0.6 per cent, largely due to lower trade in vehicles, vegetable products, and prepared foodstuffs, while imports increased by 0.5 per cent.
For the year as a whole, South Africa’s economy grew by 1.1 per cent in 2025, an improvement from the 0.5 per cent growth recorded in 2024.
"The annual increase in real GDP was primarily led by higher economic activities in finance, real estate and business services, agriculture, forestry and fishing, and trade, catering and accommodation," Vumbukani-Lepolesa said.
Despite the overall growth, key sectors including manufacturing, electricity, gas and water, and construction recorded negative growth during the year.
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