3 days ago
Slow and steady growth: GDP expands by 0.1%
Real Gross Domestic Product (GDP) has increased marginally by 0.1% during the first quarter of 2025, following an increase of 0.4% in the previous quarter.
Despite the sluggish expansion, the South African economy continues clawing back ground lost from the blow of the Covid-19 pandemic, which saw GDP drop to a low of R954b in the second quarter of 2020 to R1 170b in the first quarter of 2025.
'The agriculture, forestry and fishing industry increased by 15.8%, contributing 0.4% to the positive GDP growth. This was primarily due to increased economic activities reported for horticulture and animal products.
'The transport, storage and communication industry increased by 2.4%, contributing 0.2%. Increased economic activities were reported for land transport, air transport and transport support services,' Statistics South Africa (Stats SA) said today.
According to the institution, finance, real estate and business services increased by 0.2%, adding 0.1% to the GDP.
'Increased economic activities were reported for insurance and pension funding and auxiliary activities.
'The trade, catering and accommodation industry increased by 0.5%, contributing 0.1%. Increased economic activities were reported for retail trade, motor trade, accommodation and food and beverages,' Stats SA said.
On the decrease was the manufacturing industry, which contracted by 2%.
'Seven of the 10 manufacturing divisions reported negative growth rates. 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.
'The mining and quarrying industry decreased by 4.1%, contributing -0.2%. The largest negative contributors were platinum group metals.'
Expenditure on GDP
Household final consumption expenditure (HFCE) is also on the rise – increasing by 0.4% and contributing 0.3% to total growth.
'The main positive contributors to the increase in HFCE were expenditures on transport [1.1% and contributing 0.2%], food and non-alcoholic beverages [0.5% and contributing 0.1%], restaurants and hotels [1.4% and contributing 0.1%], 'other' [0.6% and contributing 0.1%] and health [0.8% and contributing 0.1%].
'The negative contributors were expenditures on recreation and culture, communication and housing, water, electricity, gas and other fuels. Final consumption expenditure by general government decreased by 0.1%. This was mainly driven by decreases in compensation of employees and purchases of goods and services.
'Gross fixed capital formation decreased by 1.7%, contributing -0.2%. The negative contributors to the decrease were residential buildings [-5.8% and contributing -0.6%], machinery and other equipment [-1.4% and contributing -0.6%], construction works [-2.8% and contributing -0.5%] and transport equipment [-3.1% and contributing -0.3%],' Stats SA said.
Exports and imports
Exports and imports also presented mixed results during the first quarter.
'Net exports contributed negatively [-0.3%] to expenditure on GDP. Exports of goods and services increased by 1%, largely influenced by increased trade in vegetable products, vehicles and transport equipment, excluding large aircraft and mineral products.
'Imports of goods and services increased by 2%, largely influenced by increased trade in chemical products, mineral products and machinery and electrical equipment,' the statement concluded. –
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