South Africa’s economy slowed in the third quarter of 2025, though a rebound in fixed investment offered a rare sign that stronger growth may be possible, Reuters reported.
Statistics South Africa data showed GDP expanding 0.5 percent on a quarterly, seasonally adjusted basis. That matched forecasts but fell short of the revised 0.9 percent logged in the previous quarter. Most sectors grew, with mining and agriculture performing solidly, while manufacturing weakened and the electricity, gas and water sector contracted.
After a decade of sluggish growth averaging under 1 percent a year, the country has struggled to gain momentum. Even so, investor sentiment has improved in 2025 as South African assets have attracted renewed interest, encouraged by firmer fiscal discipline and a lower inflation target. The National Treasury expects growth of 1.2 percent in 2025 and 1.5 percent in 2026.
Reuters noted that gross fixed capital formation rose 1.6 percent, the first increase in a year, driven mainly by government spending on transport equipment. Standard Bank’s head of South Africa macroeconomic research, Elna Moolman, said the improvement in investment points to better long-term prospects if the trend holds.
Year-on-year GDP grew 2.1 percent, beating expectations for 1.8 percent and offering a modest sign that the recovery may finally be gaining momentum.
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