South Africa Extends GDP Growth Streak but Momentum Slows in Q3

BREAKING NEWSDecember 3, 2025 at 1:01 PM UTC

TLDR

South Africa’s economy grew for a fourth straight quarter in the three months to September, expanding 0.5% from the previous period
The result matched forecasts but slowed from the revised 0.9% gain recorded in the second quarter
That means the economy expanded for a fourth straight quarter, extending the longest growth streak since 2021

South Africa’s economy grew for a fourth straight quarter in the three months to September, expanding 0.5% from the previous period, according to data from Statistics South Africa.

That means the economy expanded for a fourth straight quarter, extending the longest growth streak since 2021, when the nation was recovering from the Covid-19 pandemic.

The result matched forecasts but slowed from the revised 0.9% gain recorded in the second quarter. On an annual basis, GDP rose 2.1%, above the expected 1.8%.

Mining was the strongest contributor, growing 2.3% on higher output of platinum-group metals, manganese, coal and copper. Agriculture grew 1.1%, supported by better crop production. Nine of the ten major industries expanded during the quarter. Construction returned to positive growth for the first time this year after three quarters of decline. Electricity and water fell 2.5%.

Household spending increased 0.7% and fixed investment rose 1.6% after three straight quarterly declines. Exports grew 0.7% while imports increased 2.2%. The unemployment rate fell to 31.9% from 33.2% in the previous quarter, with 248,000 more people employed.

The data show South Africa remains on a moderate recovery path, though growth continues to face power, logistics, trade and fiscal constraints.

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Key Takeaways

South Africa’s growth outlook remains limited by structural barriers that restrict higher investment and job creation. The country continues to struggle with transport bottlenecks, weak rail capacity, and slow reforms at state-owned companies. The mining sector’s Q3 improvement followed a period of reduced load shedding and better energy availability, but long-term output still depends on transport reliability and regulatory clarity. The labour market gains reflect seasonal hiring and improved activity in construction, trade and community services. However, job losses in manufacturing and finance show the uneven nature of the recovery and the impact of technological change and high operating costs. Externally, new US tariffs on automotive and agricultural exports present a risk for export-driven sectors, pushing the government to accelerate diversification toward African, Asian and Middle Eastern markets. Treasury projects growth of 1.2% in 2025 and 1.5% in 2026, levels that remain below what is needed to reduce unemployment and support stronger income growth.

South Africa

Economy

GDP

Growth