South Africa’s economy expanded by 0.5% in the third quarter of 2025, following stronger growth of 0.9% in the previous quarter, according to the latest national accounts data.
Growth was driven mainly by the mining and quarrying sector, which rose by 2.3% on the back of higher production in platinum group metals, manganese ore, and coal. The trade, catering, and accommodation industry also grew by 1%, supported by increased activity in retail, wholesale trade, motor trade, and food services.
Other sectors that recorded growth included finance and business services (0.3%), general government services (0.7%), manufacturing (0.3%), agriculture (1.1%), transport and communication (0.5%), and personal services (0.3%). However, the electricity, gas, and water sector contracted by 2.5%, weighing slightly on overall growth due to reduced electricity production and consumption.
On the expenditure side, household spending increased by 0.7% and was the biggest contributor to GDP growth. Spending rose particularly on transport, food and beverages, housing, and household furnishings. Government consumption also grew modestly by 0.3%, while gross fixed capital formation — a key measure of investment — increased by 1.6%, driven mainly by transport equipment and non-residential buildings.
South Africa also recorded a R25.7 billion build-up in inventories, mainly in trade, manufacturing, and the energy sector. However, net exports remained a drag on growth as imports rose faster than exports.
Statistics South Africa and the South African Reserve Bank also confirmed that the country’s national accounts are currently being rebased to 2022, with updated figures expected to be released in 2026.
