10.03.202609:42:58UTC+00South African Economy Sees Modest Growth in Q4

The South African economy expanded by 0.4% quarter-on-quarter in Q4 2025, up from a downwardly revised 0.3% in Q3 and slightly above the consensus forecast of 0.3%. This was the fifth consecutive quarter of growth, with output increasing in five of the ten major industries.

The finance sector was the main driver, rising 1.4% and adding 0.3 percentage points to overall GDP growth. Trade activity climbed 0.9%, while personal services increased by 0.4%. By contrast, manufacturing was the biggest drag on growth, contracting by 0.6%.

From the expenditure side, household consumption (+1.2%), government spending (+0.5%), and fixed investment (+1.3%) underpinned the expansion. However, changes in inventories subtracted 0.5 percentage points from GDP, and net exports deducted a further 0.3 percentage points, as exports fell 0.6% and imports rose 0.5%.

Year-on-year, the economy grew 0.8% in Q4, down from 2.1% in Q3 and below expectations of 1.8%. For the full year 2025, GDP increased by 1.1%—the fastest pace since 2022—following a revised 0.5% rise in 2024.