South Africa’s Cabinet has welcomed the latest GDP figures, showing the economy expanded 0.8% in Q2 2025, up from 0.1% in Q1. Officials said the rebound was broad-based, with eight industries registering growth. Manufacturing, mining, and trade all returned to positive territory, while household spending also lifted supported by easing inflation.

Cabinet further noted Fitch Ratings’ decision to affirm South Africa’s long-term foreign and local currency debt ratings, maintaining a stable outlook. The agency highlighted the country’s favourable debt profile, with most liabilities rand-denominated and long-dated, as well as the credibility of its monetary policy framework.

Fitch also pointed to government’s Operation Vulindlela phase two reforms, which have begun to stabilise electricity supply, improve logistics, and address water constraints. These efforts, the agency said, have helped end the decline in freight volumes and supported its forecast of modest real GDP growth in the near term.

According to Cabinet, the ratings affirmation reflects continued investor confidence in South Africa’s fiscal management and institutional resilience at a time when reforms are beginning to improve the country’s growth trajectory.