South Africa’s gross domestic product (GDP) increased by 0.5% in the third quarter of 2025, building on a prior 0.9% expansion in the second quarter, Cape {town} Etc reports.
This latest growth reflects a mix of resilience in key industries despite challenges faced, particularly in energy production.
The trade, catering and accommodation sector emerged as a significant contributor, recording a 1.0% increase, which added 0.1 percentage points to overall GDP growth. This uptick was largely driven by heightened activity in wholesale and retail trade, motor trade, as well as accommodation and food services.
Mining and quarrying also played a pivotal role, expanding by 2.3% and contributing an additional 0.1 percentage points to GDP growth. The sector’s positive performance was supported by strong outputs in platinum group metals (PGMs), manganese ore, and coal, signalling continued demand in the international market.
Meanwhile, the finance, real estate and business services industry showed a steady increase of 0.3%, contributing another 0.1 percentage point. Growth here was attributed to activities in real estate and other business services, cutting a positive figure for the broader economy.
General government services also saw an increase of 0.7%, which was driven by enhanced employment levels across national and provincial entities.
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In positive news for households, final consumption expenditure rose by 0.7%, contributing 0.5 percentage points to total GDP growth. Consumers showed a particular affinity for durable goods and services, with significant expenditures noted in transport (1.6%), food and non-alcoholic beverages (0.9%), and housing-related sectors.
However, not all sectors boasted growth. The electricity, gas and water industry fell by 2.5%, contributing negatively to GDP figures due to decreased electricity generation and consumption amid ongoing energy challenges in the country.
On the expenditure front, gross fixed capital formation reported a commendable increase of 1.6%, largely underpinned by substantial investments in transport equipment (6.6%) and non-residential buildings (2.7%).
The R25.7 billion build-up in inventories was noted, particularly in trade and the manufacturing sectors, despite some challenges affecting the electricity industry.
While the report does indicate areas of growth, it also flags challenges in trade. Net exports had a negative contribution of -0.4 percentage points, as imports grew by 2.2%, impacting the overall trade balance.
Exports only managed a 0.7% increase, primarily supported by the trade of mineral and vegetable products.
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