South Africa’s economy recorded stronger-than-expected growth in the second quarter of 2025, with real GDP rising by 0.8% compared with the previous quarter. The improvement follows a sluggish 0.1% expansion in the first three months of the year, Stats SA reported.

Eight of ten major industries tracked by Stats SA grew during the quarter. Manufacturing output climbed 1.8%, contributing 0.2 percentage points to GDP, while mining rose 3.7% on the back of higher gold, chromium, and platinum-group metal production. The trade, catering, and accommodation sector expanded by 1.7%, its best result since early 2022, and agriculture grew 2.5%, maintaining momentum after a sharp first-quarter rise. In contrast, construction and transport remained weak, highlighting ongoing infrastructure and logistics challenges.

On the expenditure side, household consumption increased for a fifth consecutive quarter, up 0.8%, with spending on insurance, restaurants, and clothing leading the way. Inventories added an annualised R16.6 billion, reversing five straight quarters of depletion as mining, transport, and manufacturing firms rebuilt stocks. Imports dropped 2.1%, bolstering the trade balance, while fixed investment and exports weakened.

Stats SA said the data pointed to a modest but broad-based recovery, even as structural weaknesses in logistics and construction continued to weigh on performance. With growth driven by core industries and firmer consumer demand, the economy showed slight resilience heading into the second half of the year.