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South Africa\u2019s economy expanded at the fastest pace in three years in 2025, helped by stronger output in the agriculture, trade and finance industries.<\/p>\n
Gross domestic product expanded 1.1%, compared with 0.5% in the prior year, Statistics South Africa said in a report released in the capital, Pretoria, on Tuesday. That was the fastest pace since 2022, when the economy grew 2.1%.<\/p>\n
South Africa\u2019s economy has underperformed for more than a decade, expanding by an average of less than 1% annually, because of electricity shortages and logistics snarl-ups that have curbed mining and manufacturing production and deterred investment.<\/p>\n
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An increasing pace of reforms has boosted sentiment and raised expectations that the growth rate will pick up in coming years, with the National Treasury forecasting it will rise to 2% by 2028 from 1.6% projected for this year.<\/p>\n
Read: The week ahead: Big banks results and SA GDP numbers<\/p>\n
Seven of 10 sectors contributed to growth last year, with farm output growing 17.4%, trade, catering and accommodation expanding 2.3%, finance 1.9% and transport 0.8%.<\/p>\n
The outcome for 2025 was helped by improved growth in the fourth quarter. The economy expanded 0.4% in the three months through December, compared with a revised 0.3% increase in the prior quarter. The fourth-quarter figure was higher than the 0.3% median estimate of 11 economists in a Bloomberg survey.<\/p>\n
Growth in the quarter was largely led by the finance and trade sectors, which expanded 1.4% and 0.9% respectively, the data showed.<\/p>\n
\u00a9\u00a02026\u00a0Bloomberg<\/p>\n
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