SA economy grows marginally by 0.1% in the first quarter of 2025
South Africa's economy expanded by a marginal 0.1% in the first quarter of 2025
South Africa's
The transport sector grew by 2.4%, contributing 0.2 points to GDP growth, while finance rose 0.2%, adding 0.1 points, and trade contributed 0.1 percentage points, the statistics agency said.
The manufacturing industry was the largest drag on GDP, decreasing by 2% during the quarter and detracting 0.2 percentage points, while electricity and construction contributed a negative 0.1 percentage points.
Expenditure on real GDP increased by 0.1% in the first quarter of 2025, driven by household final consumption expenditure, changes in inventories and exports.
Last week, the
Economists at Nedbank expect economic growth for the remainder of this year to be boosted mainly by domestic demand, 'supported by firmer consumer confidence, sustained by a recovery in real household incomes driven by lower inflation and lower debt service costs due to lower interest rates'.
'Despite minor progress on the structural front, operating conditions remain challenging, and production costs high. The weaker global recovery will weigh on output, particularly given South Africa's elevated cost structures, underlying inefficiencies, and significant infrastructure constraints,' the bank said in a note.
'Accelerating structural reforms are the key to enhancing the international competitiveness of industries.'
These outcomes would boost the economy and create more jobs without suppressing supply, Nedbank said, predicting growth of 1% for 2025 and 1.5% on average over the next three years.
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