• 0.4% growth marks a fifth straight quarter of economic expansion.
• Finance and trade sectors led the quarterly gains in 2025.
• Annual growth reached 1.1%, up significantly from the previous year.
South Africa’s economy expanded by 0.4% in the fourth quarter (Q4) of 2025, according to data released by Statistics South Africa (Stats SA) on Tuesday. Since Q4 2024 South Africa has recorded steady growth in gdp.
| Quarter | growth (qoq) |
| Q4 2024 | 0.2% |
| Q1 2025 | 0.4% |
| Q2 2025 | 0.9% |
| Q3 2025 | 0.3% (revised from 0.5%) |
| Q4 2025 | 0.4% |
Source: Stats SA
The growth was largely fueled by consumer-facing industries and the services sector. On the supply side, five out of ten industries recorded gains.
Finance, Real Estate, and Business Services was the primary driver, growing by 1.4% and contributing 0.3 percentage points to the overall GDP figure.
The Trade, Catering, and Accommodation sector saw a 0.9% increase, supported by wholesale, retail, and hospitality as consumer activity picked up during the festive season. Agriculture recorded a fifth consecutive gain, bolstered by strong performance in field crops and horticulture.
However, the industrial sector continued to face headwinds. Manufacturing was the largest detractor, shrinking by 0.6%, largely due to a slowdown in the automotive and food and beverage divisions. Mining also saw a contraction of 0.6% during the quarter.
For the full year of 2025, South Africa’s GDP grew by 1.1%. While modest, this represents a significant improvement over the 0.5% growth recorded in 2024.
“The positive showing in the fourth quarter helped push annual GDP to its highest rate since 2022,” Stats SA noted in its report.
While the fourth-quarter data suggests resilience, analysts warn of emerging risks. Tensions in the Middle East have pressured global oil prices, potentially impacting transport costs and inflation in early 2026.
Nevertheless, many remain optimistic. Treasury and private sector forecasts suggest growth could edge toward 1.9% or 2.0% in 2026 as structural reforms in logistics and energy continue to take root.
