Statistics South Africa (Stats SA) announced on Tuesday that the real gross domestic product (GDP) increased by 0.5% in the third quarter of 2025.
This follows a revised 0.9% growth in the second quarter, marking the fourth straight quarter of economic growth.
Stats SA reported that nine of the 10 industries on the production side saw growth in the third quarter, with the highest growth rates recorded in mining, agriculture, forestry and fishing, as well as trade.
MINING AND AGRICULTURE INDUSTRY
Mining has increased by 2.3%, driven predominantly by platinum group metals, with support from manganese ore, coal, chromium ore and copper.
There was a decline in iron ore, diamonds, nickel and gold. However, this was not enough to cause a significant dent in overall growth.
Agriculture carried over its positive momentum, recording its fourth consecutive increase.
Stats SA indicated that the 1.1% rise in the third quarter was underpinned by stronger production of field crops, horticulture and animal products.
TRADE, CATERING AND ACCOMMODATION INDUSTRY
The trade, catering, and accommodation sectors also experienced their fourth consecutive quarter of growth. Stats SA revealed that positive gains were recorded across the board, with stronger wholesale trade, retail trade, automotive trade, accommodations, and food and beverages.
Construction turned positive after three consecutive quarters of decline, recording a marginal rise of 0.1%. Its positive showing was underscored by growth in non-residential buildings and construction works.
The transport, storage and communication industry increased by 0.5% and the general government was also positive, pulled higher by increased employment in national and provincial government and in extrabagical institutions.
Meanwhile, the electricity, gas and water industry decreased by 2.5% in the third quarter. This is due to decreases in electricity production and consumption.
Water consumption was also lacklustre, contributing to the industry’s poor performance.
Gross fixed capital formation expanded by 1.6% in the latest quarter, marking its first growth in a year after three consecutive quarters of decline.
Its rise was mainly driven by increased investment in transport equipment. The miscellaneous category “other assets” was also a significant positive contributor.
South African exports increased by 0.7%, driven by growth in vegetable and mineral products. Meanwhile, imports rose 2.2%. This was influenced by a rise in the trade of machinery and electrical equipment, mineral products, along with animal and vegetable fats and oils.
General government was also positive, pulled higher by increased employment in national and provincial governments and in extracurricular (state) institutions.
