Government welcomes continued growth in South Africa's economy

Government welcomes the latest data released by Statistics South Africa showing that South Africa’s economy grew by 1,1% in 2025, with Gross Domestic Product (GDP) expanding by 0,4% in the fourth quarter (October–December). The fourth quarter performance marks the fifth consecutive quarter of economic growth, signalling continued resilience in the economy despite a challenging global environment.

 

On the production side of the economy, growth was largely driven by key service-related sectors, including finance, real estate and business services; trade, catering and accommodation; and personal services. Positive contributions were also recorded in agriculture and general government services. On the expenditure side, economic expansion was supported by increased household spending, growth in gross fixed capital formation, and higher government consumption, which collectively contributed to the positive quarterly outcome.

 

The fourth quarter performance helped lift annual GDP growth to 1,1% in 2025, the highest annual growth rate since 2022, when the economy expanded by 2,1%.

 

Government believes that the reforms that are being implemented through Operation Vulindlela and Government/Business parternship are enablers of this sustained growth.

 

Government will continue to work with all partners to accelerate inclusive growth, support investment and build a resilient economy that delivers sustainable development and job creation.

 

Media enquiries:

Ms Nomonde Mnukwa, Acting Government Spokesperson

Cell: 083 653 7485

 

Mr William Baloyi, Deputy Government Spokesperson

Cell: 083 390 7147