SA GDP records modest growth in final quarter of 2025, thanks to household spending

Statistics South Africa (Stats SA) revealed that the country’s gross domestic product (GDP) increased by 0.4% in the fourth quarter of 2025, following a 0.3% increase in the third quarter. The finance, real estate and business services industry contributed significantly to the growth, followed by the trade, catering and accommodation industry. Household spending also contributed significantly to the growth.

Analysts remain concerned that manufacturing is still struggling, as the industry decreased by 0.6% for the period. Professor Waldo Krugell, an economist at the Faculty of Economic and Management Sciences at North-West University (NWU), on Tuesday toldThe Citizenthat the growth, no matter how small, is something worth being excited about. “This is South Africa, so we have to be excited about decimal figures of growth,” he said.

“The drivers of growth are as expected, with some growth from agriculture, which is really positive for that fourth quarter.” According to Stats SA, the agriculture, forestry and fishing industry increased by 0.4% during the quarter, driven by economic activity in field crops and horticultural products. Data revealed that the finance, real estate, and business services industry increased by 1.4%, contributing 0.3 percentage points. “Increased economic activities were reported for other business services; financial intermediation, insurance and pension funding; auxiliary activities; and real estate activities,” said Stats SA.

[paywall]

“The trade, catering and accommodation industry increased by 0.9%, contributing 0.1 of a percentage point. Increased economic activities were reported for wholesale trade, motor trade, retail trade, food and beverages and accommodation.” General government services increased by 0.4%. This was mainly due to increased employment in provincial and local government.

[/paywall]