JOHANNESBURG - South Africa’s economy grew at a faster pace in 2025 than in 2024, but the recovery remains modest, offering little relief for millions of unemployed.
Statistics South Africa reports that GDP expanded by 1.1 percent last year, up from 0.5 percent in 2024.
The economy grew by 0.4 percent in the final quarter, but overall growth fell short of the 1.4 percent projected by Finance Minister Enoch Godongwana.
Growth was mainly driven by stronger activity in the finance, trade, real estate, and business services sectors, while agriculture also had a strong year, helping lift overall output.
However, the picture was mixed across the economy.
Manufacturing, electricity, and construction all recorded negative growth during the year.
Household consumption remained a key driver, with consumers spending more on goods and services.
Johann Els, PSG Chief Economist, said the country still needs to break out of stagnation.
"This growth is not enough to convince ratings agencies that the government can reduce its debt burden.
"We've got more positive signs coming through in terms of a bigger role of the private sector where the structural constraints in the economy are easing," he said.
Annabel Bishop, Investec Chief Economist, added that South Africa needs 3 to 4 percent growth to make a real impact on unemployment.
She said manufacturing faces headwinds, especially after the US tariffs last year.
"Agriculture needs stronger domestic demand," she said.
"We need that real strong uplift in economic growth and demand in the country."