SA GDP expands at a mere 0. 1% in the first quarter
South Africa's economic growth has plummeted to just 0.1% in the first quarter of 2025, following a revised 0.4% gain in late 2024, raising concerns about the country's economic future amid revised forecasts from the South African Reserve Bank
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South Africa's economic growth slumped to 0.1% in the first quarter of the year, which followed a mere revised 0.4% gain in gross domestic product in the last quarter of 2024, according to Statistics South Africa figures released on Tuesday.
Statistics South Africa has yet to release figures for 2024.
The 0.1% growth represents a significant step backwards, and is the slowest rate of growth since the COVID-19 pandemic.
The negligible gain in economic growth does not bode well for the country matching several predictions, the latest of which was the South African Reserve Bank's (SARB's) indication that growth will come in at 1.2% this year, rising to 1.8% by 2027.
SARB's revised forecast is a significant step down from its April expectation of 1.7% gross domestic product (GDP) growth. Business and government were anticipating a gain of 3% this year as of January, which would have helped create a million new jobs.
In a statement, the agency said the agriculture, forestry and fishing industry was positive growth drivers, mostly because of the increased economic activities reported for horticulture and animal products.
The transport, storage, communication, land transport, air transport and transport support services, finance, real estate and business services, trade, catering and accommodation industries were all positive in terms of growth, the figures showed.
However, manufacturing declined 2% as a sector, while the mining and quarrying industry decreased by 4.1%, with the largest negative contributors being the platinum group metals industry.
Both manufacturing and mining are key economic growth drivers, with manufacturing accounting for almost 13% of GDP in 2023, and mining accounting for 6% of economic activity in the same year.
The largest negative contributions were reported for the petroleum, chemical products, rubber and plastic products; food and beverages; and motor vehicles, parts and accessories and other transport equipment divisions, said Statistics South Africa.
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