By Ebi Kesiena
South Africa’s economy grew by 0.8 percent in the second quarter of 2025, rebounding from the marginal 0.1 percent expansion recorded in the first quarter, according to data released by Statistics South Africa (Stats SA) on Wednesday.
The recovery was driven largely by stronger performances in mining and manufacturing. Stats SA reported that mining and quarrying expanded by 3.7 percent, adding 0.2 percentage points to overall GDP. Platinum group metals, gold, and chromium ore were the key drivers of the sector’s growth.
Manufacturing also posted gains, rising 1.8 percent, with petroleum, chemical products, rubber and plastics, and the automotive industry recording the strongest increases. Similarly, the trade, catering, and accommodation sector grew by 1.7 percent, buoyed by higher activity in retail, motor trade, and hospitality.
However, some industries weighed on growth. The transport, storage, and communication sector contracted by 0.8 percent, largely due to reduced land transport activity. The construction industry shrank for a third consecutive quarter, down 0.3 percent, as both residential and non-residential projects underperformed.
Despite the modest improvement, South Africa’s economy remains under pressure from deep-rooted structural challenges, including persistent unemployment, energy instability, and low investor confidence.
Meanwhile, economists warn that while the second-quarter rebound is encouraging, sustaining growth will require bold reforms and targeted measures to address long-standing constraints and unlock broader economic potential.
