South Africa Economy Expands More than Anticipated

The South African economy grew by 0.8% quarter-on-quarter in Q2 2025, improving on a minimal 0.1% growth in Q1 and beating forecasts of 0.5%. Despite the modest scale, this represents the strongest quarterly growth since Q2 2023. Eight out of ten industries registered growth, with manufacturing (+1.8%) contributing the most, followed by mining (+3.7%) and trade (+1.7%). The agriculture, forestry, and fishing sector saw a 2.5% rise during the period, thanks to stronger activity in both horticulture and animal products. On the expenditure side, stronger household consumption (+0.8%) and government spending (+0.7%) helped sustain positive momentum. However, fixed investment declined by 1.4%, while net exports dragged on growth as exports dropped 3.1% and imports fell by only 2.1%. On a yearly basis, the GDP expanded by 0.6% in Q2, down from a 0.8% growth in the previous three-month period. Considering the first half of the year, the South African economy advanced by 0.7%.