Government has welcomed the latest data released by Statistics South Africa showing that South Africa’s economy grew by 1.1% in 2025, with Gross Domestic Product (GDP) expanding by 0.4% in the fourth quarter.
Fourth quarter performance, covering the period from October to December, marks the fifth consecutive quarter of economic growth, signalling continued resilience in the economy, despite a challenging global environment.
On the production side, growth was largely driven by key service-related sectors, including finance, real estate and business services, as well as trade, catering and accommodation and personal services.
Positive contributions were also recorded in agriculture and general government services, further supporting overall economic activity during the quarter.
On the expenditure side, economic expansion was supported by increased household spending, growth in gross fixed capital formation, and higher government consumption, which together contributed to the positive quarterly outcome.
The fourth quarter performance helped to lift annual GDP growth to 1.1% in 2025, the highest annual growth rate since 2022 when the economy expanded by 2.1%.
Government said the sustained growth reflects the impact of ongoing economic reforms and partnerships aimed at strengthening the country’s economic performance.
“Government believes that the reforms that are being implemented through Operation Vulindlela and the Government-Business partnership are enablers of this sustained growth,” government said in a statement.
Government said that it will continue working with social and economic partners to accelerate inclusive growth, support investment and build a resilient economy.
“Government will continue to work with all partners to accelerate inclusive growth, support investment and build a resilient economy that delivers sustainable development and job creation,” the statement read. – SAnews.gov.za
